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You currently own 800 shares of JKL, Inc. JKL is currently an all equity that has 800,000 shares of stock outstanding at a market price

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You currently own 800 shares of JKL, Inc. JKL is currently an all equity that has 800,000 shares of stock outstanding at a market price of $40 a share. The company's earnings before Interest and taxes are $6,400,000. JKL recently decided to issue $3,200,000 of debt at 6 percent interest. This debt will be used to repurchase shares of stock. Ignore taxes and answer the following two questions: Part A:What is JKLs target debt to asset ratio? Part B: How many shares of JKL stock must you sell to undo the leverage? Assume that you can loan out those funds at 6 percent interest

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