Southwest Sands currently has $26,500$ shares of stock outstanding. It is considering issuing $$155,000$ of debt at an interest rate of $8\mathrm{.}2$ percent. The break$-$even level of EBIT between these two capital structure options is $$83,000.$ How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes.

Multiple Choice

$4,396\mathrm{.}18$ shares

$4,058\mathrm{.}01$ shares

$3,188\mathrm{.}44$ shares

$3,478\mathrm{.}30$ shares

$3,855\mathrm{.}11$ shares