Aaron Corp. is an all-equity firm with 15 million shares outstanding. Aaron has 14 million in cash and expects future free cash flows (FCF) of 5 million per year. Management plans to use the cash to expand the firms operations, which will in turn increase future free cash flows to 6 million per year.

If the cost of capital (r) of Aarons investments is 8%, how would a decision to use the cash for a share repurchase rather than the expansion change the share price?