Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently trading at $20 per share. Last month, Anconia announced that it will change its capital structure by issuing $300 million in debt. The $200 million raised by this issue, plus another $200 in cash million in cash Anconia already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect.

The market capitalization of Anconia Copper after this transaction after this transaction takes place is closest to:

a. 1100 million

b. 800 million

c. 900 million

d. 1200 million