Question
It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant
It is January 2nd and senior management of Baldwin 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 ($47.70) and leverage changes to 2.7. Which of the following statements are true? Select all that apply
Equity will be $91,608,535
Working capital will remain the same at $18,207,851
Total liabilities will be $127,950,729
The total investment for Baldwin will be $223,136,764
Baldwin will issue stock totaling $3,577,500
Total Assets will rise to $237,683,795
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