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It is January 2nd and senior management of Digby meets to determine their investment plan for...

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Finance

It is January 2nd and senior management of Digby meets todetermine their investment plan for the year. They decide to fullyfund a plant and equipment purchase by issuing 75,000 shares ofstock plus a new bond issue. Assume the stock can be issued atyesterday’s stock price ($32.99) and leverage changes to 2.8. Whichof the following statements are true? Select all that apply.Select: 3

A. Working capital will remain the same at $11,700,538

B. Digby will issue stock totaling $2,474,250

C. Total liabilities will be $146,134,802

D. The total investment for Digby will be $24,479,152

E. Total assets will rise to $226,620,137

Answer & Explanation Solved by verified expert
4.1 Ratings (803 Votes)
Which of the following statements are true Select all that apply A Working capital will remain the same at 11700538 B Digby will issue stock totaling 2474250 C Total liabilities will be 146134802 D The    See Answer
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It is January 2nd and senior management of Digby meets todetermine their investment plan for the year. They decide to fullyfund a plant and equipment purchase by issuing 75,000 shares ofstock plus a new bond issue. Assume the stock can be issued atyesterday’s stock price ($32.99) and leverage changes to 2.8. Whichof the following statements are true? Select all that apply.Select: 3A. Working capital will remain the same at $11,700,538B. Digby will issue stock totaling $2,474,250C. Total liabilities will be $146,134,802D. The total investment for Digby will be $24,479,152E. Total assets will rise to $226,620,137

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