Bluecorp is a firm with no debt. It has 30 million shares outstanding which is currently traded at $17 per share. Bluecorp has had consistently stable earnings, with a 26% tax rate. The manager would like to borrow $244.8 million on a permanent basis and use the proceeds to repurchase outstanding shares. If the share price increases upon announcement and before the repurchase, the share price after the repurchase would be closest to:

a. $21.40 b. $25.20 c. $20.40 d. $19.10