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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 ($35.13) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

The total investment for Digby will be $204,475,977

Equity will be $83,051,554

Digby will issue stock totaling $2,634,750

Working capital will remain the same at $16,357,549

Total Assets will rise to $217,125,372

Total liabilities will be $118,789,673

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