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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:
- do nothing
- sell some shares and loan out the sale proceeds
- see all of their shares and loan out the entire sale proceeds
- sell some shares are hold the sale proceeds in cash
- borrow funds and purchase more shares.
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