Question
It is January 2nd and senior management of Chester meets to determine their investment plan for the year. they decide to fully fund a plant
It is January 2nd and senior management of Chester 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 yesterday's stock price (31.71) and leverage charges to 2.7. Which of the following statements are true? Select all that apply.
Equity will be $80,735,822 Chester will issue stock totaling $2,378,250 Working capital will remain the same at $14,308 596 Total assets will rise to $211,565,445 Total liabilities will be $118,395,051 The total investment for Chester will be $201,509,124
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