Use the following information to answer the questions below. RV Leathers is an all-equity firm. It shares are currently trading at $20. There are 60 million shares outstanding. Last month, RV Leathers announced that it will change its capital structure by issuing debt. The $200 million raised by this issue, plus another $200 million in cash that the company already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect. The market capitalization of RV Leathers before this transaction takes place is closest to: A.$1200 million B.$1100 million C.$800 million D.$900 million

The market capitalization of RV Leathers after this transaction takes place is closest to: A.$1200 million B.$800 million C.$1100 million D.$900 million

At the conclusion of this transaction, the number of shares that RV Leathers will have outstanding is closest to: A.5 million B.15 million C.20 million D.40 million

Suppose you are a shareholder in RV Leathers holding 500 shares, and you disagree with the decision to lever the firm. You can undo the effect of this decision by: A.borrowing $1200 and buying 60 shares of stock. B.borrowing $2000 and buying 100 shares of stock. C.selling 60 shares of stock and lending $1200. D.selling 100 shares of stock and lending $2000.