Luther is a successful logistical services firm that


Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors and has already announced the stock repurchase plan. Currently Luther is an all-equity firm with 1.25 billion shares outstanding. Luther's shares are currently trading at $20 per share.

After the repurchase how many shares will Luther have outstanding?

A. 1.0 billion

B. 1.1 billion

C. 1.2 billion

D 0.75 billion

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Financial Management: Luther is a successful logistical services firm that
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