The Gable Inn Is an All-Equity Firm with 16,000 Shares

The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50. The firm is issuing $50,000 of debt and using the proceeds to reduce the number of outstanding shares. How many shares of stock will be outstanding once the debt is issued? Ignore taxes.

A) 11,970 shares
B) 12,552 shares
C) 12,846 shares
D) 13,030 shares
E) 13,561 shares