JM Case Inc. has a market value of $5 million with 500,000 shares outstanding. The book value of its equity is $1,750,000. If the company repurchases 35 percent of its shares in the stock market and there are no taxes or transactions costs and all else remains the same, what should the market value of the firm be after the repurchase? (Points : 3.5)

$1,000,000 $1,750,000 $3,250,000 $4,000,000 $5,000,000