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 ($37.48) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
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The total investment for Digby will be $24,710,632
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Total liabilities will be $143,626,664
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Digby will issue stock totaling $2,811,000
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Total assets will rise to $227,541,269
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Working capital will remain the same at $15,581,435
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