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 yesterdays stock price ($30.12) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Select: 3
Total assets will rise to $211,190,759
Working capital will remain the same at $12,563,714
Chester will issue stock totaling $2,259,000
The total investment for Chester will be $18,159,399
Total liabilities will be $136,313,072
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