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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

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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 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 ($34.98) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

Select: 3
Working capital will remain the same at $15,118,267
Digby will issue stock totaling $2,623,500
Equity will be $82,626,603
Total Assets will rise to $216,008,378
The total investment for Digby will be $205,740,849
Total liabilities will be $120,490,745
www2 .capsim-com/cg GIReports2011 exe? studentKey 1435847&simid-C59559&round-6&Report CapCourierlAnnReport Cash fl from operating vities Net Income (Loss) $16,489 Adjustment for Depreciation sa,081 ry gesinslo Changes ts payable S3,204 ($3,570 Accounts sh from operations $22,222 sting Plant provements (net) S24306) from financing activities Dividends pal $5,000 Cash from long term debt issued $10,000 bl borrowing Cash from rgency kont $15,000 ng activ S12,826 Net change positi Sheet Survey $73,850 $121,220 Plant and equipment lated Doprociation $82,27 Total Assets $154,134 Accounts Payable sa,697 Long Tet $30,909 $60,006 S17,080 Retained Earnings $80. Total Equity $103,227 rs' Equity Income Statement Survey $175,607 Costs Labor. Matena. Carmy $102,6% $18,673 SGA (R&D, Pro $7.9 $1,307 $22.05 $2,014 278 ($14.2850 B,030 $23.046 S3B 350 $14.10 $66,456 $118,680 197) $135.918 $0,216 $29.339 S2B,765 $65.320 ,833 S70,508 $135,018 $171,560 S112.202 $7.91 S870) $4.0?3 $16,661 4.2400 $10,353 $2.003 $31,884 SA8,836 $50,254 $12.633 $5,288 $88,155 $221800 $143,9 $212.000 sa 128 $140,060 $37,983 $212.088 $153,700 $103 S13,672 $838 $2.079 $16,075 (S51960) $34.223 ($21.740) $52,328 Digby $11.654 $8.285 (570300) $7,307 $33.602 S82,07 $123.114 $43.853 S80,0 $203,117 Digby $141,70

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