Horizon Landscape Currently Has 62,000 Shares of Stock Outstanding and No

Multiple Choice

Horizon Landscape currently has 62,000 shares of stock outstanding and no debt.The price per share is $18.50.The firm is considering borrowing funds at 7 percent interest and using the proceeds to repurchase 12,000 shares of stock.Ignore taxes.How much is the firm borrowing?

A) $240,000
B) $222,000
C) $184,000
D) $1
E) $225,000