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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 0.42.

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 0.42. 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 0.42. sell some shares of the firm's stock and invest the sale proceeds in some bonds

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