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  3. 11. rene invested in the stock of blammo, inc. whe

11. Rene invested in the stock of Blammo, Inc. when the firm was unlevered. Since...

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Accounting

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11. Rene invested in the stock of Blammo, Inc. when the firm was unlevered. Since then, Blammo has changed its capital structure and now has a debt-equity ratio of 0.42. To unlever her position, Rene can: A. borrow some money and purchase additional shares of Blammo stock. B. maintain her current equity position as the debt of the firm did not affect her personally, C. sell some shares of Blammo stock and hold the proceeds in cash. D. sell some shares of Blammo stock and invest the sale proceeds in some bonds. E. create a personal debt-equity ratio of 0.42

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