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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 $10,000,000 in bonds. Assume the bonds are issued at face value 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 $16,890,843
  • Total liabilities will be $139,789,578
  • Digby's long-term debt will rise by $10,000,000
  • Working capital will remain the same at $16,294,305
  • Total Assets will rise to $226,072,157

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