The Down Towner Has a Market Value Balance Sheet as Shown

The Down Towner has a market value balance sheet as shown below.The firm currently has 12,000 shares of stock outstanding and net income of $17,500. The firm has decided to repurchase 10 percent of its outstanding stock at the current market price and fund that purchase with new debt.After the repurchase there will be ____ shares outstanding at a price per share of ____.

A) 10,200; $11.50
B) 10,200; $12.65
C) 10,800; $12.65
D) 10,800; $11.50
E) 10,800; $14.05