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It is January 2nd. Senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and

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It is January 2nd. Senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday's stock price ($39.27). Which of the following statements are true? Check all that apply. Select: 3 Save Answer The Chester bond issue will be $3,337,950 Total investment for Chester will be $5,301,450 Chester will issue stock totaling $1,963,500 The Chester Working Capital will be unchanged at $17,234 Long term debt will increase from $82,711,642 to $84,675,142 Total Assets will rise to $229,085,000

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