13. Chapter 14, Question 7b: Cisoft is a highly profitable technology firm that currently has $5 billion in cash. The firm has decided to use this cash to repurchase shares from investors, and it has already announced these plans to investors. Currently, Cisoft is an all-equity firm with 5 billion shares outstanding. These shares currently trade for $12 per share. Cisoft has issued no other securities except for stock options given to its employees. The current market value of these options is $8 billion.

Part B - With perfect capital markets, what is the market value of Cisofts equity after the share repurchase in billions?

1. 60
2. 55
3. 66
4. 63

Part C- What is the value per share?

1. 12
2. 55
3. 13
4. 8