Kappa Corporation has just raised its dividend from $2.50 to $5 per share. (It plans to reduce its repurchases by a similar amount.) Caterina Chekov, who owns 100 shares of Kappa does not need the extra cash. What can she do to offset the change in dividend policy?

Multiple Choice

A. Reinvest the extra dividend in Kappa stock.

B. Nothing. She should sell out and invest elsewhere.

C. Sell $250 of Kappa stock each year.

D. Borrow $250 and invest it in Kappa stock.