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Company A just revised its capital structure from a debt-equity ratio of 0.25 to 0.4. The firm's shareholders who prefer the old capital structure should:

Company A just revised its capital structure from a debt-equity ratio of 0.25 to 0.4. The firm's shareholders who prefer the old capital structure should:

  1. do nothing
  2. sell some shares and loan out the sale proceeds
  3. see all of their shares and loan out the entire sale proceeds
  4. sell some shares are hold the sale proceeds in cash
  5. borrow funds and purchase more shares.

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