JM Case Inc

Multiple Choice

JM Case Inc.has a market value of $5 million with 500,000 shares outstanding.The book value of its equity is $1,750,000.If the company repurchases 20 percent of its shares in the stock market,what will be the book value of equity if all else remains the same?

A) $750,000
B) $1,250,000
C) $1,000,000
D) $1,400,000
E) $4,000,000
F) None of the above.