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 ($29.09) and leverage changes to 2.8. Which of the following statements are true? Select all that apply. Select : 3
A) The total investment for Digby will be $24,503,129
B) Total liabilities will be $142,703,414
C) Digby will issue stock totaling $2,181,750
D) Total assets will rise to $221,837,516
E) Working capital will remain the same at $12,190,064
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