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 $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? PLEASE SELECT THREE (3) TRUE STATEMENTS: Total liabilities will be $132,709,346 The total investment for Baldwin will be $12,728,474 Working capital will remain the same at $12,936,641 Baldwin's long term debt will rise by $10,000,000 Total assets will rise to $212,378,526

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$10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply Select: 3 Save Answer Total liabilities will be $132,709,346 The total investment for Baldwin will be $12,728,474 Working capital will remain the same at $12,936,641 Baldwin's long-term debt will rise by $10,000,000 Total Assets will rise to $212,378,526 Selected Financial Statistics Andrews Baldwin Chester Digby ROSS 3.3% 0.4% 9.1% -2.6% Asset Turnover 28 0.69 0.67 -4.2% 0.3% 11.5% Leverage (Assets/Equity) 2.0 2.5 2.0 3.0 0.8% 23.0% ROE 8.5% Emergency Loan $0 $00 $162,849.019 $139,357,757 Sales $173,915,973 $139,068,233 ($1,846,940) $15,560,919 $31,155,276 $11,302,170 EBIT $617,326 Profits $5,308,706 $15,783,131 $3,596,030) Cumulative Profit $5,479,121 ($8,854,578) $29,375,556 $2,509,199 SG&A /Sales 17.5% 2.3% 7.1% 9.9% 35.4% 34.7% Contrib. Margin 33.6% 34.1% Percent of Sales Market Share 100% O Profit 90% Other O SGA O Depr O Var Costs 30% Andrews 26.47 Baldwin 22.65 10% O Chester 28.27 Digby 22.61 Andrews Baldwin Chester Digby COMP-XME INQUIRER Page 1