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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

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 2.50. Assume the stock can be issued at yesterday's stock price $22.33. Which of the following statements are true? (Select 2 answers) Digby working capital will be unchanged at $16,109,112 Total Assets will rise to $146,648,130 Long term debt will increase from $33,729,277 to $34,845,853 Digby will issue stock totaling $1,116,576 Total investment for Digby will be $2,795,388 Digby bond issue will be $50,141

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