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What is the market value of luther equity

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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.

With perfect capital markets, what is the market value of Luther's equity after shares repurchase?

Reference no: EM132816557

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