16-3 Restructuring Strategy Suppose that Lil John Industries equity is currently selling for $27 per share and that there are 2 million shares outstanding. The firm also has 50,000 bonds outstanding, which are selling at 103 percent of par. If Lil John was considering an active change to their capital structure so that the firm would have a D/E of 1.4, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell?

please type the answer