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 yesterdays stock price ($32.49). Which of the following statements are true? Check all that apply.

Select: 3

A. Chester will issue stock totaling $1,624,500

B. Total investment for Chester will be $4,386,150

C. The Chester bond issue will be $2,761,650

D. The Chester Working Capital will be unchanged at $13,697

E. Total Assets will rise to $218,886,000

F. Long term debt will increase from $82,613,414 to $84,237,914