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

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.$1,485,000

b.$1,800,000

c.$1,520,000

d.$1,260,000

e.$1,760,000