Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that Big Blue Banana announces plans to lower its corporate taxes by borrowing $100 million and using the proceeds to repurchase shares.

Assuming perfect capital markets, the share price for BBB after this announcement is closest to:

A) $11.40.

B) $10.85.

C) $10.00.

D) $8.60.