It is January 2nd. 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 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 2.8. Assume the stock can be issued at yesterdays stock price ($29.61). Which of the following statements are true? Check all that apply.

Select: 3

Digby will issue stock totaling $1,480,500

Long term debt will increase from $82,739,588 to $84,220,088

The Digby Working Capital will be unchanged at $14,333

Total Assets will rise to $220,176,000

Total investment for Digby will be $4,145,400

The Digby bond issue will be $2,664,900