You currently own 1400 shares of JKL, Inc. JKL is an all equity that has 800000 shares of stock outstanding at a market price of $40 a share. The company's earnings before interest and taxes are $6,400,000. You believe that the JKL should finance 50 percent of assets with debt, but management refuses to leverage the company. Given that similar firms' pay 9 percent interest on their debt, answer the following questions.

Part A: How much money should you borrow to create the leverage on your own? Assume you can borrow funds at 9 percent interest.

Part B: How many additional shares of JKL stock must you purchase to create the leverage on your own?