JM Case Incorporation 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 $20\%$ of its shares in the stock market at the current market price, what will be the market value of equity after the repurchase if all else remains the same? $($Assume there are no taxes, no transactions costs, and that investors do not change their perceptions of the firm.$)$

Multiple Choice

$$4,000,000$

$$1,000,000$

$$5,000,000$

None of the options are correct.

$$3,250,000$

$$1,750,000$