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225. An investor owns 500 shares of stock in a Montreal firm with a debt/equity ratio = 1.0. The investor prefers a debt/equity ratio =
225. An investor owns 500 shares of stock in a Montreal firm with a debt/equity ratio = 1.0. The investor prefers a debt/equity ratio = 1.5. If the stock price is $2 per share, what should the investor do? A. Borrow $500 and buy 250 new shares. B. Borrow $1,500 and buy 750 new shares. C. Borrow $2,500 and buy 1,250 new shares. D. Sell 250 shares and lend $500. E. Sell 25 shares and lend $50. The answer is B -> Help me work through it, please
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