15

Use the information for the question(s) below. 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 price per share of Luther's stock after the share repurchase? O A. $15 O B. $25 O C. $24 OD. $20