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 ($38.81) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Select 3 correct responses.
The total investment for Baldwin will be $21,789,453
Total liabilities will be $144,571,205
Baldwin will issue stock totaling $2,910,750
Total assets will rise to $226,262,208
Working capital will remain the same at $12,535,228
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