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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 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday's stock price ($36.35) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

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  • The total investment for Chester will be $20,541,102
  • Total liabilities will be $141,553,919
  • Chester will issue stock totaling $2,726,250
  • Total assets will rise to $220,825,892
  • Working capital will remain the same at $13,951,905

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