Question
It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant
It is January 2nd and senior management of Digby 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 ($37.00) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select : 3
The total investment for Digby will be $207,598,897
Total liabilities will be $120,807,729
Digby will issue stock totaling $2,775,000
Working capital will remain the same at $16,364,605
Total Assets will rise to $219,351,154
Equity will be $84,016,168
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