Use the following information to answer the question(s)below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-Suppose you are a shareholder in d'Anconia Copper holding 500 shares,and you disagree with the decision to lever the firm.You can undo the effect of this decision by:
A)borrowing $2000 and buying 100 shares of stock.
B)selling 100 shares of stock and lending $2000.
C)borrowing $1200 and buying 60 shares of stock.
D)selling 60 shares of stock and lending $1200.

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The Answer of Use the following information to answer the question(s)below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-Suppose you are a shareholder in d'Anconia Copper holding 500 shares,and you disagree with the decision to lever the firm.You can undo the effect of this decision by:
A)borrowing $2000 and buying 100 shares of stock.
B)selling 100 shares of stock and lending $2000.
C)borrowing $1200 and buying 60 shares of stock.
D)selling 60 shares of stock and lending $1200.

Use the Following Information to Answer the Question(s)below