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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 ($45.81) 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 $222,537,555

Total liabilities will be $128,244,439

Chester will issue stock totaling $3,435,750

Working capital will remain the same at $17,676,287

Total Assets will rise to $236,038,364

Equity will be $90,857,366

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