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 2.7. Assume the stock can be issued at yesterdays stock price ($33.51). Which of the following statements are true?

Check all that apply.

Select: 3

a. Long term debt will increase from $81,657,877 to $83,333,377

b. The Digby Working Capital will be unchanged at $14,613

c. Total investment for Digby will be $4,523,850

d. The Digby bond issue will be $2,848,350

e. Digby will issue stock totaling $1,675,500

f. Total Assets will rise to $220,295,000