With perfect capital markets,what is the market value of Luther's equity after the share repurchase?

Question

Quizplus · Accepted Answer

In perfect capital markets, the market value of a company's equity does not change due to financial transactions like share repurchases. Therefore, if Luther's equity had a certain market value before the repurchase, it would remain the same after the repurchase. The question does not provide Luther's initial equity value, but the implication is that the value of the equity remains constant through the repurchase process.

With Perfect Capital Markets,what Is the Market Value of Luther's