Consider a firm with a current stock price of 160 and 20 million shares outstanding. The firm is going to use 320 million on a share repurchase program. Assuming that the program can be effectuated immediately and ignoring any announcement effects etc., what will be characterising the situation after the shares have been repurchased:

1. Stock price 156 and 18 million shares outstanding.
2. Stock price 156 and 20 million shares outstanding.
3. Stock price 160 and 16 million shares outstanding.
4. Stock price 160 and 18 million shares outstanding.
5. None of the above