The Beta Corporation Had 1,000 Shares Outstanding and a Market

The Beta Corporation had 1,000 shares outstanding and a market value of $90,000 prior to the declaration of a $5 per share dividend.To finance a new project they will issue equity and the end result will be that the market value of the firm:

A) Drops by $1,000
B) Drops to $85,000
C) Increases by $1,000
D) Increases to $95,000 Share price prior to declaration:
= $90,000/1,000) = $90
Share price after declaration:
= $90 - $5 = $85