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 2.8. Which of the following statements are true? Select all that apply. Select: 3
Working capital will remain the same at $9,751,394
Total Assets will rise to $212,499,972
Chesters long-term debt will rise by $10,000,000
The total investment for Chester will be $14,978,028
Total liabilities will be $134,829,294
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