An investor owns 500 shares of stock in a firm with a debt/equity ratio = 1.0. The
investor prefers a debt/equity ratio =1.6. If the stock price is $2 per share, what should
the investor do?

A. Borrow $500 and buy 250 new shares
B. Borrow $1,500 and buy 750 new shares
C. Borrow $2,500 and buy 1,250 new shares
D. Sell 250 shares and lend $500
E. Sell 25 shares and lend $50

Now, according to my book, the answer is B) but I would LOVE an explanation as to how to get the answer. Thanks in advance