Please Show your own work to complete. Do Not copy another Chegg post. Roy$$s Toys, Inc. is currently an all$-$equity firm with $500,000$ shares of outstanding equity and a stock price of $$10$ per share. The firm is contemplating a restructuring that would involve issuing $$1$ million in debt and using all the proceeds to repurchase outstanding equity. The debt would have an interest rate of $8\%$ and equity would be repurchased at a price of $$10$ per share. Assume that markets are perfect $($no taxes, no bankruptcy, etc.$).$ How many shares will be repurchased if the firm conducts the restructuring?

$100,000$ shares

$75,000$ shares

$50,000$ shares

$120,000$ shares