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 $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.
Select: 3
A. Total Assets will rise to $208,669,046
B. The total investment for Chester will be $12,310,954
C.Working capital will remain the same at $12,604,341
D. Chesters long-term debt will rise by $10,000,000
E. Total liabilities will be $130,528,166
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