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 ($35.91) 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 $14,417,761
Total liabilities will be $140,829,878
Baldwin will issue stock totaling $2,693,250
Total assets will rise to $220,312,314
The total investment for Baldwin will be $21,120,460
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