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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

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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 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 yesterday's stock price ( $37.88). Which of the following statements are true? Check all that apply. Select : 3 Digby will issue stock totaling $1,894,000 Total investment for Digby will be $5,303,200 The Digby bond issue will be $3,409,200 The Digby Working Capital will be unchanged at $14,740 Total Assets will rise to $235,274,000 Long term debt will increase from $84,514,780 to $86,408,780

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