Willys-Overland Motors Inc A)$1,375M
B)$1,280M
C)$1,385M
D)$1,390M
E)$1,395M

Willys-Overland Motors Inc. produces 4×4 quarter-ton trucks. Selected financial information for Willys-Overland is provided in the table below. The CEO, John Willys, wants to distribute $1B of cash using a stock repurchase. He intends to repurchase 15 million shares at a price of $70. Mr. Willys owns 22.5 million shares (worth $1,395 million before the repurchase) . He does not plan to sell any of his shares during the repurchase. What is his wealth after the repurchase?
Willys-Overland Motors Inc.
Selected Financial Information
$$\begin{array} { | l | c | } \hline \text { Stock Price } & \$ 62 \\\hline \text { Cash } & \$ 1,000 \mathrm { M } \\\hline \text { Shares Outstanding } & 150 \mathrm { M } \\\hline \text { Debt } & \$ 0 \\\hline\end{array}$$

A) $1,375M
B) $1,280M
C) $1,385M
D) $1,390M
E) $1,395M