Question
6. It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a
6.
It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($36.77) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Select : 3
The total investment for Chester will be $208,302,958
Total liabilities will be $121,026,658
Chester will issue stock totaling $2,757,750
Working capital will remain the same at $16,978,600
Total Assets will rise to $220,754,156
Equity will be $84,518,549
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