Orange Corp. is an all-equity firm. To capture the tax benefit of debt, Orange plans to sell bonds and use the proceeds to repurchase shares in the market. If we only consider the tax benefit of debt, how and when would the stock price change?

Group of answer choices:

Stock prices will increase after the announcement of bond issuance.

Stock prices will increase after the bond issuance.

Stock prices will increase after the shares repurchase.

Stock prices will decrease after the bond issuance.

Stock prices will decrease after the shares repurchase.

Please 100% accuracy!