How many shares will luther have outstanding

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Reference no: EM13303542

Luther is a successful logistical services firm that currently has $5billion 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?

(1) 0.75 billion
(2) 1.0 billion
(3) 1.1 billion
(4) 1.2 billion

Reference no: EM13303542

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