The firm is an all-equity firm with assets worth $512,000 and 64,000 shares outstanding. It plans to borrow $120,000 and use these funds to repurchase shares. The firms marginal corporate tax is 21%, and it plans to keep its outstanding debt equal to $120,000 permanently. If the firm plan to repurchase shares at $9 per share, what is the expected per share value of equity for the leveraged firm? Please show your work.

1. A) $8 per share

2. B) $10.45 per share

3. C) $8.23 per share

4. D) $8.59 per share

5. E) Repurchase will not be successful because the firms offer is too low.