Question: How to solve this, please help me with it thanks in advane. KD Industries has 63 million shares outstanding with a market price of $16

How to solve this, please help me with it thanks in advane.

KD Industries has 63 million shares outstanding with a market price of $16 per share and no debt. KD has had consistently stable earnings, and pays a 27 % tax rate. Management plans to borrow $131 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. How many shares will KD repurchase in the recapitalization if the share price increases upon announcement and before the recapitalization? Select one: a. 8.19 million shares Ob. 7.91 million shares O c. 5.30 million shares O d. 7.48 million shares

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