d'Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently trading at $20 per share. Last month, d'Anconia announced that it will change its capital structure by issuing $200 million in debt. The $200 million raised by this issue, plus another $200 million in cash that d'Anconia already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect. The market capitalization of d'Anconia Copper before this transaction takes place is closest to:

a. $800 million.

b. $900 million.

c. $1100 milion.

d. $1200 million.