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 yesterday's stock price ($29.47) and leverage changes to 2.8. Which of the following statements are true? Select all that apply. Select :3 Submit Answer The total investment for Digby will be $199,759,720 Total liabilities will be $118,026,494 Digby will issue stock totaling $2,210,250 Working capital will remain the same at $13,827,808 Total Assets will rise to $216,475,632 Equity will be $79,522,976 Annual Report Digby Balance Sheet ASSETS 2022 2021 Common Size Cash 16.9% $18,195 $33,369 $10,613 5.4% $8,934 $8,007 4.1% $11,143 $51,989 26.3% $38,272 $215,760 109.2% $165,300 ($70,200) -35.5% (557,176) DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. $145,560 73.7% $108,124 $197.549 100% $146,395 Accounts Receivable Inventory Total Current Assets Plant & Equipment Accumulated Depreciation Total Fixed Assets Total assets LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity $6.532 3.3% $6,004 $31,629 16% $21,716 $82,075 41.5% $59, 170 $120,236 60.9% $86,890 $37,332 18.9% $18,667 $39.981 20.2% $40,839 $77,313 39.1% $59,506 Total Liab. & O. Equity $ 197,549 100% $146,395