Jules Corp. common stock currently sells at a price of $40 per share. There are 1 million shares of Jules common stock outstanding. Management at Jules wants to distribute $5 million of excess cash to the common shareholders by repurchasing shares of its common stock. Management would need to buy back ____ shares and Jules Corp. common stock would sell at $____ per share after the buyback.

Select one:

a. 125,000; $35

b. 125,000; $40

c. 100,000; $45

d. 100,000; $35

e. 150,000; $39.50