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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 yesterdays stock price ($35.72) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Equity will be $83,517,546 | |
Total Assets will rise to $218,264,074 | |
Working capital will remain the same at $15,938,762 | |
Chester will issue stock totaling $2,679,000 | |
The total investment for Chester will be $206,808,786 | |
Total liabilities will be $120,612,240 |
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