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Question 5 5) Ms. Kraft owns 50,000 shares of the common stock of Copperhead Corporation with a market value of $2 per share, or $100,000.

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Question 5 5) Ms. Kraft owns 50,000 shares of the common stock of Copperhead Corporation with a market value of $2 per share, or $100,000. The company is currently financed as follows (refer to the foregoing table). Copperhead now announces that it is replacing $1 million of short-term debt with an issue of common stocks. What action can Ms. Kraft take to ensure that she is entitled to exactly the same proportion of profits as before? (Ignore taxes). a. Borrow $5,350 and purchase 2,675 stocks. b. Borrow $7,820 and purchase 3,910 stocks. c. Borrow $6,250 and purchase 3,125 stocks. d. Borrow $781.25 and purchase 3,125 stocks

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