Company X has 100 shares outstanding and is expected to earn $1,000 per year in perpetuity. It announces that instead of paying year 1s earnings as dividends, it will use the $1,000 to repurchase shares in the open market. Calculate the number of shares outstanding at the end of year 1, after the share repurchase, if the required rate of return is 10 percent. (Hint: the number of shares that the company can repurchase for $1,000 at the end of year 1, obviously, depends on the companys overall value at that point in time). (a) 110.1 (b) 100.0 (c) 90.91 (d) 89.19 (e) 88.88