Flour Mills is an all-equity firm with a total market value of $891,860. The firm has 38,000 shares of stock outstanding. Management is considering issuing $275,000 of debt at an interest rate of 7.5 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares can the firm repurchase if it issues the debt securities? (Round the number of shares repurchased down to the nearest whole share.)

Select one: a. 11,717 shares b. 11,618 shares c. 11,647 shares d. 11,656 shares e. 11,699 shares