explain

7. An investor owns 500 shares of stock in a firm with a debt/equity ratio = 1.0. The investor prefers an all-equity firm. If the stock price is $2 per share, what should the investor do? A. Sell 25 shares and lend $50. B. Sell 250 shares and lend $500. C. Borrow $500 and buy 250 new shares. D. Borrow $1,500 and buy 750 new shares. E. Borrow $2,500 and buy 1,250 new shares