Kennesaw Steel Corporation As Chief Financial Officer of the Kennesaw Steel Corporation (KSC)

Kennesaw Steel Corporation
As Chief Financial Officer of the Kennesaw Steel Corporation (KSC) , you are considering a recapitalization plan that would convert KSC from its current all-equity capital structure to one including substantial financial leverage. KSC now has 100,000 shares of common stock outstanding, which are selling for $50.00 each, and the recapitalization proposal is to issue $2,000,000 worth of long-term debt at an interest rate of 8.0 percent and use the proceeds to repurchase $2,000,000 of common stock.
-Refer to Kennesaw Steel Corporation.How many shares will be left outstanding after the re-capitalization? (assume that the stock can be repurchased at $50 per share)

A) 60,000
B) 50,000
C) 45,000
D) 40,000