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A firm has 5 million (5 M) shares outstanding with a market price of $20 per share. The firm has $80 million ($80 M) in

A firm has 5 million (5 M) shares outstanding with a market price of $20 per share. The firm has $80 million ($80 M) in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. How many shares will remain after the repurchase?

A.

0.25 million

B.

4 million

C.

3.4 million

D.

1 million

E.

None of the others is correct

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