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Jessica Invested in Quantro Stock When the Firm Was Unlevered

Question 13

Multiple Choice

Jessica invested in Quantro stock when the firm was unlevered.Since then,Quantro has changed its capital structure and now has a debt-equity ratio of 0.30.To unlever her position,Jessica needs to:


A) borrow some money and purchase additional shares of Quantro stock.
B) maintain her current equity position as the debt of the firm did not affect her personally.
C) sell some shares of Quantro stock and hold the proceeds in cash.
D) sell some shares of Quantro stock and loan out the sale proceeds.
E) create a personal debt-equity ratio of 0.30.

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