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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 ($38.01) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.

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Select :3 Submit Answer The total investment for Digby will be $213,382,075 O Total liabilities will be $125,523,998 Digby will issue stock totaling $2,850,750 Working capital will remain the same at $13,813,437 Total Assets will rise to $230,038,416 Equity will be $85,007,327

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