Jessica invested in Quantro stock when the firm was unlevered. Since then, Quantro has changed its capital structure and now has a debt-equity ratio of 0.30. To unlever her position, Jessica needs to:
A. borrow some money and purchase additional shares of Quantro stock.
B. maintain her current equity position as the debt of the firm did not affect her personally.
C. sell some shares of Quantro stock and hold the proceeds in cash.
D. sell some shares of Quantro stock and loan out the sale proceeds.
E. create a personal debt-equity ratio of 0.30.
Answer: D. sell some shares of Quantro stock and loan out the sale proceeds.
You might also like to view...
COPQ is ______.
A. cost of proper quality B. cost of poor quality C. cost of process quality D. cost of premium quality
Over which of the following subjects does the federal government NOT have jurisdiction?
A) the regulation of trade and commerce B) criminal law C) education D) the postal service E) unemployment insurance
A large discount store and supermarket has a hair styling salon on its premises. The salon has several operators
Salon customers can shop in other parts of the store until their name is called for salon service, at which time the customer will be served by the next available stylist. This scenario provides an example of which of the following? A) multiple-server, limited queue length B) single-server, multiphase, limited queue length C) multiple-server, unlimited queue length D) multiple single-server systems, limited queue length E) single-server, unlimited queue length
Discuss the process of triangulation.
What will be an ideal response?