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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 ($34.90) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.
Select: 3
Chester will issue stock totaling $2,617,500
Total liabilities will be 147,223,411
Total assets will rise to $229,420,656
Working capital will remain the same at $11,762,602
The total investment for Chester will be $25,897,839image text in transcribed

image text in transcribedimage text in transcribed

Company Andrews Baldwin Chester Digby Close $78.08 $27.20 $34.90 $77.89 Change $17.03 $12.85 ($12.32) $7.64 Shares MarketCap ($M) Book Value $147 $42.95 1,878,998 $24.80 2,867,424 $78 2,605,085 $91 $30.39 1,867,732 $145 $36.73 EPS $11.32 ($0.75) ($0.08) $7.34 Dividend $0.00 $0.00 $0.00 $0.00 Yield 0.0% 0.0% 0.0% 0.0% PIE 6.9 -36.4 -449.9 10.6

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