Jessica invested in QRT stock when the company was unlevered. Since then, QRT has changed its capital structure and now has a debt-equity ratio of .36. To unlever her position, Jessica needs to:

• maintain her current equity position as the debt of the firm does not affect her personally.

• borrow some money and purchase additional shares of QRT stock.

• sell 36 percent of her shares of QRT stock and hold the proceeds in cash.

• sell 36 percent of her shares of QRT stock and loan out the sale proceeds.

• create a personal debt-equity ratio of .36.