Dynamo Corp. produces annual cash flows of $$150$ and is expected to exist forever. The company is currently financed with $75$ percent equity and $25$ percent debt. Your analysis tells you that the appropriate discount rates are $10$ percent for the cash flows, and $7$ percent for the debt. You currently own $10$ percent of the stock. If Dynamo wishes to change its capital structure from $75$ percent to $60$ percent equity, what transaction do you need to take in order to undo the restructuring according to M&M Proposition $1?$

Sell $$22\mathrm{.}50$ of stock

Sell $$10\mathrm{.}80$ worth of stock

Buy $$22\mathrm{.}50$ worth of debt

Buy $$10\mathrm{.}80$ worth of debt