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 $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 Total liabilities will be $138,170,969 Total Assets will rise to $222,677,582 Digbys long-term debt will rise by $10,000,000 The total investment for Digby will be $15,490,418 Working capital will remain the same at $15,357,647
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