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Martin and Sons (M and S) presently is an all equity firm with 76,000 shares of stock outstanding at the market price of $30 a share. Company's earnings before interest and taxes are $89,000. M and S has made decision to add leverage to the financial operations by issuing $570,000 of debt with the 10% percent interest rate. This $570,000 will be utilized to repurchase shares of stock. You own 3,000 shares of M and S stock. You as well loan out funds at the 10% percent rate of interest. How many of shares of stock in M and S should you sell to offset leverage which firm is assuming? Assume that you loan out all of funds you receive from sale of the stock.

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