The JumpStart Corporation is unlevered and valued at $500,000. JumpStart has 200,000 shares outstanding. The company announces that in the near future it will issue $200,000 of debt and buy back $200,000 of stock. If the firm is in the 34% tax bracket, how many shares of stock will be repurchased?

The answer is :

New Firm Value: $500,000 + (.34) ($200,000) => $568,000New Price Per Share = $568,000/200,000 => $2.84Number of shares repurchased = $200,000/$2.84 => 70,422.5

I dont understand this step :New Price Per Share = $568,000/200,000. What does the 200,000 stands for ? number of share will be repurchase or share outstanding ?