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:

Group of answer choices

$11.40

$10.85

$10.00

$8.60