Simpsons is an all equity firm that has 400,000 shares of stock outstanding. The company is in the process of borrowing $1.5 million at 5 percent interest to repurchase 30,000 of the firms outstanding shares. Ignore taxes. What will be the market value of equity after the repurchase?

A. $19.8 million

B. $18.5 million

C. $19.2 million

D. $18.9 million

E. $20.0 million