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A how much money should you borrow to create the leverage

You currently own 1,400 shares of RBJ, Inc. RBJ is an all equity firm that has 100,000 shares of stock outstanding at a market price of $45 per share. The company's EBIT are $800,000. You believe that RBJ should finance 20% of assets with debt but management refuses to leverage the company. Given that similar firms pay 8% on debt, answer the following two questions;

A) How much money should you borrow to create the leverage on your own assuming you can borrow funds at 8% interest?

B) How many additional shares of RBJ stock must you purchase to create the leverage on you own?

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Finance Basics: A how much money should you borrow to create the leverage

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