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8 . Carthage Enterprises is an all - equity firm with 2 9 M shares outstanding priced at $ 3 1 . Mia has $

8. Carthage Enterprises is an all-equity firm with 29M shares outstanding priced at $31. Mia has $14000 to invest but she would prefer if the firm had a debt-to-value ratio of 0.1. How can she create an equivalent leverage in her portfolio?
invest $1400 in the bonds and $12600 in the shares of Carthage
borrow $1400 and buy $15400 worth of shares of Carthage
invest $12600 in the bonds and $1400 in the shares of Carthage
borrow $1556 and buy $15556 worth of shares of Carthage
borrow $12600 and buy $26600 worth of shares of Carthage

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