Arizona Coffee, Inc. is an all-equity firm, and has just announced that it will raise $4 million perpetual debt to repurchase some of its shares (in about a month's time). Suppose the firm currently has 400,000 shares outstanding, and that its shares were trading at $18 /share before the announcement. Further assume that the marginal corporate tax rate is 25% and that it is highly unlikely that Arizona Coffee will become financially distressed after raising $8 million in debt (i.e. PV of financial distress costs is approximately zero). How many shares will Arizona Coffee Inc., repurchase (in about a month's time)? 168,927 shares 175,364 shares 222,222 shares 195,122 shares 250,000 shares