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 ($33.49) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.
A. The total investment for Baldwin will be $203,008,405
B. Total liabilities will be $119,747,473
C. Baldwin will issue stock totaling $2,511,750
D. Working capital will remain the same at $13,882,633
E. Total Assets will rise to $219,064,808
F. Equity will be $80,749,181
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