Naylor's is an all-equity firm with 60,000 shares of stock outstanding at a market price of $50 a share. The company has earnings before interest and taxes of $102,000. Naylor's has decided to issue $825,000 of debt at 7.5 percent and use the proceeds to repurchase shares. Currently, you own 500 shares of Naylor's stock. How many shares of this stock will you continue to own if you unlever this position? Assume you can loan out funds at 7.5 percent interest. Ignore taxes.

		322.2 shares
		350.0 shares
		362.5 shares
		425.5 shares
		502.8 shares