Bryan Invested in Bryco Stock When the Firm Was Financed

question 47

Multiple Choice

Bryan invested in Bryco stock when the firm was financed solely with equity.The firm now has a debt-equity ratio of .3.To maintain the same level of leverage he originally had,Bryan needs to:

• A)borrow some money and purchase additional shares of Bryco stock.
• B)maintain his current position in Bryco stock.
• C)sell some shares of Bryco stock and hold the proceeds in cash.
• D)sell some shares of Bryco stock and loan out the proceeds.
• E)sell half of his Bryco stock and invest the proceeds in risk-free securities.

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Definitions:

HR Strategy

A detailed plan by the human resources department focusing on long-term workforce management and development to align with the organization's goals.

Internal Fit

The degree to which an organization's internal strategies, systems, and processes are aligned and consistent with each other.

Competitive Business Strategies

Approaches undertaken by businesses to gain a competitive edge in the market, focusing on pricing, product differentiation, market segmentation, and customer service.

Market Niche

A focused, targetable portion of a market defined by unique preferences or needs that distinguish it from the market at large.