Green Manufacturing, In., plans to announce that it will issue $2,000,000 of perpetual bonds and use these funds to repurchase equity.The bonds will have a 6-percent coupon rate.Green manufacturing currently is an all-equity firm.The current value of Green's equity is $10,000,000 and there are 500,000 shares outstanding.After the sale of bonds and share repurchase, Green will maintain the new capital structure indefinitely.Green is in the 40-percent tax bracket.

(a)How many shares of stock will Green repurchase?