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Suppose that a company's equity is currently selling for $19 per share and there are 3 million shares outstanding. There are also 10 thousand bonds

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Suppose that a company's equity is currently selling for $19 per share and there are 3 million shares outstanding. There are also 10 thousand bonds outstanding: they are selling at 100 percent of par ($1,000). The firm is considering an active change to its capital structure: it desires a debt/equity ratio of 0.5. Which type of security (stocks or bonds) do they need to sell to accomplish this, and how much do they need to sell? $12,333,333 in new debt $1.755,400 in new equity $12.328,000 in new equity $1.755,400 in new debt

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