AMD Co. will pay a constant dividend of $5 per share each year, forever. Suppose all investors pay a 25% tax on dividends, and there is no capital gains tax. The cost of capital for investing in AMD stock is 10%.

The management announced that AMD will no longer pay dividends but will use the cash to repurchase stock. The price of a share of AMD's stock is now closest to ________.

$60.00

$100.00

$50.00

$40.00