You currently own 900 shares of Spring Valley Inc.. Spring Valley is an all-equity firm that has 100,000 shares of stock outstanding at a market price of $30 a share. The company's earnings before interest and taxes are $200,000. Spring Valley has decided to issue $1 million of debt at 10 percent interest. This debt will be used to repurchase shares of stock.

If you prefer the original capital structure of 100% equity and the associated payoffs, you will take which of the following actions to achieve the original payoffs (under 100% equity)?

A. borrow $9000 at 10% to purchase another 300 shares

B. sell 450 shares and loan out the proceeds at 10%

C. sell 300 shares and loan out the proceeds at 10%

D. borrow $18,000 at 10% to purchase another 600 shares

E. None of the above