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2. Ms White owns 50, 000 shares of the common stock of IBM Corporation with a market value of S2 per share, or $100, 000

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2. Ms White owns 50, 000 shares of the common stock of IBM Corporation with a market value of S2 per share, or $100, 000 overall The company is currently financed as follows: Book Value Common Stock $2, 000, 000 (8 million shares) Short-term loans $2, 000, 000 IBM now announces that it is replacing S1 milion of short-term debt with an issue of common stock. What can Ms White do to make her position same as before (in terms of return-risk trade-off) (Ignore taxes

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