Assume that you are a shareholder in On-the-Move Corporation. The company has just changed its debt-equity ratio from 0.29 to 0.38. If you prefer the old capital structure, you should: Multiple Choice O sell some shares and loan out the sale proceeds. do nothing. borrow funds and purchase more shares. sell some shares and hold the sale proceeds in cash. sell all of their shares and loan out the entire sale proceeds.
Assume that you are a shareholder in On-the-Move Corporation. The company has just changed its debt-equity ratio from 0.29 to 0.38. If you prefer the old capital structure, you should: Multiple Choice O sell some shares and loan out the sale proceeds. do nothing. borrow funds and purchase more shares. sell some shares and hold the sale proceeds in cash. sell all of their shares and loan out the entire sale proceeds.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that you are a shareholder in On-the-Move Corporation. The company has just changed its debt-equity ratio from 0.29 to 0.38. If you prefer the old capital structure, you should: Multiple Choice O sell some shares and loan out the sale proceeds. do nothing. borrow funds and purchase more shares. sell some shares and hold the sale proceeds in cash. sell all of their shares and loan out the entire sale proceeds.
Transcribed Image Text:Assume that you are a shareholder in On-the-Move Corporation. The company has just changed its debt-equity ratio from 0.29 to 0.38. If you prefer the
old capital structure, you should:
Multiple Choice
O
sell some shares and loan out the sale proceeds
do nothing.
borrow funds and purchase more shares
sell some shares and hold the sale proceeds in cash.
sell all of their shares and loan out the entire sale proceeds.
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