Select the best answer for the question. 8. Suppose that the common shares of Oceanic Luxury...

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Select the best answer for the question. 8. Suppose that the common shares of Oceanic Luxury Vessels, Inc., is trading for $38 a share and that 5 million shares are outstanding. The company also has 75,000 bonds outstanding, which are selling at 102 percent of par. If Oceanic Luxury Vessels, Inc., was considering an active change to its capital structure so that the firm would have a D/E ratio of 1.6, which type of security (stocks or bonds) would it need to sell to accomplish this, and how much would it have to sell? O A. Stock: $445.2 million O B. Stock, $289.4 million O C. Debt; $227.5 million O D. Debt, $248.5 million Select the best answer for the question. 8. Suppose that the common shares of Oceanic Luxury Vessels, Inc., is trading for $38 a share and that 5 million shares are outstanding. The company also has 75,000 bonds outstanding, which are selling at 102 percent of par. If Oceanic Luxury Vessels, Inc., was considering an active change to its capital structure so that the firm would have a D/E ratio of 1.6, which type of security (stocks or bonds) would it need to sell to accomplish this, and how much would it have to sell? O A. Stock: $445.2 million O B. Stock, $289.4 million O C. Debt; $227.5 million O D. Debt, $248.5 million

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The question is asking how much the company needs to sell of either stocks or bonds to achieve a deb... View the full answer