You're an Australian stock analyst employed at a brokerage. It's 9 am and you're about to send an email update to your clients before the Australian equity market opens at 10am.

Overnight, the big news was that the gold price fell by 6%, while the S&P500 index and ASX200 index futures were unchanged.

You believe that an Australian gold mining firm's market value of assets would also have fallen by the same proportion as the gold price.

You're trying to calculate how much the levered mining firm's share price should fall when the Australian equity market opens later this morning.

The mining firm's debt-to-assets ratio is 2/3, the assets-to-equity ratio is 3 and the debt-to-equity ratio is 2, all based on market values.

How much do you expect the mining firm's share price to fall by when the Australian equity market opens this morning? It's expected to fall by around:

a. 0.6667%

b. 4%

c. 6%

d. 12%

e. 18%