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 ($37.61) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3
1.Working capital will remain the same at $16,296,930
2.Total liabilities will be $121,082,334
3.The total investment for Baldwin will be $208,600,464
4.Equity will be $84,697,379
5.Baldwin will issue stock totaling $2,820,750
6.Total Assets will rise to $221,066,899
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