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 3 that apply.
Total liabilities will be $133,811,094
Chesters long-term debt will rise by $9,000,000
Working capital will remain the same at $17,366,174
The total investment for Chester will be $205,971,406
Total Assets will rise to $221,832,842
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