Assume that Rose Corporations (RC) EBIT is not expected to grow in the future and that all earnings are paid out as dividends. RC is currently an all-equity firm. It expects to generate earnings before interest and taxes (EBIT) of $6 million over the next year. Currently, RC has 5 million shares outstanding and its stock is trading for a price of $12 per share. RC is considering borrowing $12 million at a rate of 6% and using the proceeds to repurchase shares at the current price of $12. Following the borrowing of $12million and subsequent share repurchase, the value of a share of RC is closest to: (1) $14.00 (2) $13.20 (3) $12.00 (4) $10.80