FINA Corp has a debt-to-equity ratio of 0.2 in a perfect capital market. Recently, FINA decided to change its debt-to-equity ratio to 0. An original investor, Ken, does not like the new capital structure. Ken currently owns $1000 FINA stocks. To unwind the effect of change in capital structure on cashflows from FINA, Ken needs to:

Group of answer choices

borrow $250 and use it to purchase FINA stocks.

borrow $200 and keep the cash.

sell $200 FINA stocks and use the proceeds to purchase bonds from a similar company.

sell $250 FINA stocks and keep the cash.