If a firm has a D/E ratio of 3, how much debt must you borrow to match the firms leverage? Assume you begin with $1,800 to invest with.

A. $4,800

B. $6,000

C. $7,200

D. $5,400

Using the information in the above question, what is your total investment after leveraging?

A. $8,000

B. $7,800

C. $9,000

D. $7,200

If the share price is $90 per share, how many shares can we buy by mimicking the levered firm?

A. 80

B. 90

C. 100

D. 120