wEleanor invested in Hwajin stock when the company was unlevered. Since then, Hwajin has changed its capital structure and now has a debt-equity ratio of .42. To unlever her position, Eleanor needs to: borrow money and purchase additional shares of Hwajin stock. maintain her current equity position as the debt of the firm does not affect her personally. sell 42 percent of her shares of Hwajin stock and hold the proceeds in cash sell 42 percent of her shares of Hwajin stock and lend out the sale proceeds create a personal debt-equity ratio of 42.

Eleanor invested in Hwajin stock when the company was unlevered. Since then, Hwajin has changed its capital structure and now has a debt-equity ratio of .42 . To unlever her position, Eleanor needs to: borrow money and purchase additional shares of Hwajin stock maintain her current equity position as the debt of the firm does not affect her personally. sell 42 percent of her shares of Hwajin stock and hold the proceeds in cash. sell 42 percent of her shares of Hwajin stockand lend out the salo procceds. create a scrsonal debt-equity ratio of 4.42