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 ($36.85) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Select: 3
Working capital will remain the same at $15,504,343
Baldwin will issue stock totaling $2,763,750
The total investment for Baldwin will be $208,818,500
Total Assets will rise to $219,229,409
Equity will be $83,959,827
Total liabilities will be $122,094,923
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