Amdoc INC. is financed solely by common stock and has outstanding 38 million shares with a market price of $36 per share. It now announces that it intends to issue $540 million of debt and to use the proceeds to buy back common stock. How will be the market price of Amdoc INC. affected by the announcement?

Stock Price will go down.

Stock Price remains the same

Stock Price will go up.

Stock Price will go up on the announcement date and return back at the same level on the next date.