Assume that in addition to 1.25 billion common shares outstanding,Luther has stock options given to employees valued at $2 billion.The market value of Luther's non-cash assets is closest to:
A)$22 billion
B)$20 billion
C)$25 billion
D)$18 billion
E)$27 billion

Question

Quizplus · Accepted Answer

The market value of Luther's non-cash assets is calculated by subtracting the value of stock options from the total market value of the company. Assuming the market value of the company is $24 billion (1.25 billion shares at $19.20 per share), subtract the $2 billion in stock options to get $22 billion.

Assume That in Addition to 1