TLCEnterprises Just Revised Its Capital Structure from a Debt-Equity Ratio

Multiple Choice

T.L.C.Enterprises just revised its capital structure from a debt-equity ratio of 0.30 to a debt-equity ratio of 0.45.The firm's shareholders who prefer the old capital structure should:

A) sell some shares and hold the sale proceeds in cash.
B) sell all of their shares and loan out the entire sale proceeds.
C) do nothing.
D) sell some shares and loan out the sale proceeds.
E) borrow funds and purchase more shares.