It is January 2nd. 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 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.8. Assume the stock can be issued at yesterday’s stock price ($34.67). Which of the following statements are true? Check all that apply.

Select: 3

-Long term debt will increase from $84,365,920 to $86,099,420

-Total investment for Chester will be $4,853,800

-The Chester Working Capital will be unchanged at $12,734

-Total Assets will rise to $228,580,000

-The Chester bond issue will be $3,120,300

-Chester will issue stock totaling $1,733,500