Bryan Invested in Bryco,Inc

question 16

Multiple Choice

Bryan invested in Bryco,Inc.stock when the firm was financed solely with equity.The firm is now utilizing debt in its capital structure.To unlever his position,Bryan needs to:

• A)borrow some money and purchase additional shares of Bryco stock.
• B)sell some shares of Bryco stock and loan it out such that he creates a personal debt- equity ratio equal to that of the firm.
• C)sell some shares of Bryco stock and hold the proceeds in cash.
• D)maintain his current position as the debt of the firm did not affect his personal leverage position.
• E)create a personal debt-equity ratio that is equal to exactly 50% of the debt-equity ratio of the firm.

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Definitions:

Simple Random

A sampling method in which every member of a population has an equal chance of being selected for the sample.

Survey Questionnaires

A research instrument consisting of a series of questions designed to gather information from respondents for data collection purposes.

Quota Sampling

A non-random sampling technique where individuals are selected based on specific traits or characteristics to ensure representation of these traits in the sample.

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being included in the sample, ensuring that the sample is representative of the population.