Question: River Cruise is all equity financed 1 0 0 , 0 0 0 shares. It now proposes to issue $ 2 5 0 , 0

River Cruise is all equity financed 100,000 shares. It now proposes to issue $250,000 of bonds and use the proceeds to repurchase 25,000 shares. Suppose an investor currently holds 1,000 shares in the company but is unhappy with the decision to borrow $250,000. Which of the following modifications to her own investment portfolio would offset the effects of the firm's additional borrowing? borrow $2,500 on her own account and use the cash to buy additional River Cruise shares

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