You currently own 700 shares of JKL, Inc. JKL is an all equity that has 300,000 shares of stock outstanding at a market price of $20 a share. The company's earnings before interest and taxes are $1,200,000. You believe that the JKL should finance 20 percent of assets with debt, but management refuses to leverage the company. Given that similar firms' pay 5 percent interest on their debt, answer the following questions.

A: How much money should you borrow to create the leverage on your own? Assume you can borrow funds at 5 percent interest.

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B: How many additional shares of JKL stock must you purchase (using the borrowed funds in Part A) to create the leverage on your own?