Slurp Cola Inc. is all equity financed and generates perpetual annual EBIT of $600. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Slurp has a 100% payout rate, 1,000 shares outstanding, and that shareholders require a return of 6%.Assume that the tax rate is 0%. Slurp Cola Inc.is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares at the price of $10.00 per share. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 4%. Assume that the tax rate is 0%.If Slurp goes ahead with the repurchase, then what is the stock price after the repurchase is complete?

A) $9.50 B) $10.00 C) $10.50 D) $11.00 E) $11.50