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 frominvestors, and it has already announced these plans to investors.Currently, Cisoft is anall-equity firm with

4 billion shares outstanding. These shares currently trade for

$7 per share. Cisoft has issued no other securities except for stock options given to its employees. The current market value of these options is

$6 billion.

a. What is the market value ofCisoft's non-cashassets?

b. With perfect capitalmarkets, what is the market value ofCisoft's equity after the sharerepurchase? What is the value pershare?