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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 ($34.18) and leverage changes to 2.8. Which of the following statements are true? Select all that apply. Select: 3

Digby will issue stock totaling $2,563,500
Working capital will remain the same at $12,839,465
The total investment for Digby will be $207,894,281
Total liabilities will be $123,344,313
Total Assets will rise to $222,384,307
Equity will be $81,986,467

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