Lascheid Enterprises is an all-equity firm with 175,000 shares outstanding. The companys stock price is currently $80 a share. The companys EBIT is $2,000,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its earnings per share equals its dividends per share. The firms tax rate is 30 percent. The company is considering issuing $800,000 worth of bonds and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated yield to maturity of 8 percent. The risk-free rate is 5 percent and the market risk premium is also 5 percent. The companys beta is currently 1.0, but its investment bankers estimate that the companys beta would rise to 1.2 if it proceeded with the recapitalization. What would be the companys stock price following the repurchase transaction?

a. $106.67

b. $102.63

c. $ 77.14

d. $ 74.67

e. None of the above