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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 $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.
Baldwins long-term debt will rise by $10,000,000 | |
Working capital will remain the same at $17,180,780 | |
Total liabilities will be $139,896,836 | |
The total investment for Baldwin will be $18,403,120 | |
Total Assets will rise to $227,131,880 |
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