Alderanian's is an all-equity firm that has 200,000 shares of stock outstanding. Neal, the financial vice president, is considering borrowing $300,000 at 8.5 percent interest to repurchase 50,000 shares. Ignoring taxes, what is the current value of the firm?

A. $700,000

B. $960,000

C. $1,200,000

D. $925,000

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