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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 $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.

  • The total investment for Chester will be $205,250,150

  • Total liabilities will be $134,271,217

  • Chesters long-term debt will rise by $9,000,000

  • Working capital will remain the same at $15,305,774

  • Total Assets will rise to $218,643,119

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