Assume you are given the following information for firms A and B:

	A	B
D	$54,000.00	$46,000.00
E	$39,500.00	$47,500.00
Price	$25.00	$25.00
i	12.00%	12.00%
EBIT	$157,350.00	$93,000.00
No taxes

How do you replicate an investment in 40% of stock B by using stock A?

A) Buy 760 shares of stock B and lend $3,200.

B) Buy 40% of stock B and borrow $3,3200.

C) Buy 632 shares of stock A and lend $3,200.

D) Buy 40% of stock A and borrow $3,200.