Cripple Creek Distilleries Inc is an all equity company with 20M share

Cripple Creek Distilleries Inc is an all equity company with 20M shares outstanding. It’s stock last closed at $20. Cripple Creek has too much cash. The CEO, Levon Helm, wants to distribute the excess cash with an open market stock repurchase.

He is contemplating buying back $5M worth of shares at a price of $20. What will the stock price be after completion of the repurchase?
A) $19.00
B) $19.25
C) $19.50
D) $19.75
E) $20.00

ANSWER

E