You currently own 800 shares of JKL, Inc. JKL is an all equity that has 1,000,000 shares of stock outstanding at a market price of $45 a share. The company's earnings before interest and taxes are $9,000,000. You believe that the JKL should finance 50 percent of assets with debt, but management refuses to leverage the company. Glven that similiar 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 (using the borrowed funds in Part A) to create the leverage on your own? You currently own 800 shares of JKL, Inc. JKL is currently an all equity that has 600,000 shares of stock outstanding at a market price of $25 a share. The company's earnings before Interest and taxes are $3,000,000. JKL recently decided to issue $1,500,000 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 JKL's 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