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Please show workings (answer +workings, thank you ) EA Industries is an all-equity firm with 10 milion shares outstanding, which are currently trading at $5

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EA Industries is an all-equity firm with 10 milion shares outstanding, which are currently trading at $5 per share. Last month, EA Industries announced that it will change its capital structure by issuing $10 million in debt. The $10 million raised by this issue, plus another $10 milion in cash that EA Industries already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect. Suppose you are a shareholder in EA Industries holding 100 shares, and you disagree with the decision to lever the firm. You can undo the effect of this decision by: 7. A. Selling 25 shares of stock and lending $125. B. Borrowing $167 and buying 35 shares of stock. C. Borrowing $125 and buy 25 shares of stock. D. Selling 35 shares of stock and leading $167

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