Kennesaw Steel Corporation As Chief Financial Officer of the Kennesaw Steel Corporation (KSC)

Kennesaw Steel Corporation
As Chief Financial Officer of the Kennesaw Steel Corporation (KSC) , you are considering a recapitalization plan that would convert KSC from its current all-equity capital structure to one including substantial financial leverage. KSC now has 100,000 shares of common stock outstanding, which are selling for $50.00 each, and the recapitalization proposal is to issue $2,000,000 worth of long-term debt at an interest rate of 8.0 percent and use the proceeds to repurchase $2,000,000 of common stock.
-Refer to Kennesaw Steel Corporation.What is the new debt-to-equity ratio if the recapitalization is completed? (assume that the stock can be repurchased at $50 per share)

A) 1.50
B) 1.00
C) 0.67
D) 0.33