Reggie Perrin invested in GROT, Inc.$$s stock when the firm was unlevered. Since then, GROT has recapitalized and now has a D$/$E ratio of $0\mathrm{.}42.$ To unlever his position, Reggie can:

Multiple Choice

borrow some money and purchase additional shares of the firm$$s stock.

maintain his current equity position as the debt of the firm did not affect him personally.

sell some shares of the firm$$s stock and hold the proceeds in cash.

create a personal debt$-$equity ratio of $0\mathrm{.}42.$

sell some shares of the firm$$s stock and invest the sale proceeds in some bonds.