Taunton's Is an All-Equity Firm That Has 160,000 Shares of Stock

Taunton's is an all-equity firm that has 160,000 shares of stock outstanding.Neal,the financial vice president,is considering borrowing $275,000 at 7.45 percent interest to repurchase 25,000 shares.Ignoring taxes,what is the current value of the firm?

A) $1,260,000
B) $1,800,000
C) $1,485,000
D) $1,520,000
E) $1,760,000