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It is January 2 nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a
It is January nd 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 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price $ and leverage changes to Which of the following statements are true? Select all that apply.
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The total investment for Chester will be $
Total liabilities will be $
Chester will issue stock totaling $
Total assets will rise to $
Working capital will remain the same at $
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