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Gusella Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding. Gusella Industries has

Gusella Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding. Gusella Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt. Assume perfect capital markets. The number of shares that Gusella must issue is closest to:

A. 15 million B. 12 million C. 50 million D. 40 million E. 30 million

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