It is January 2nd. Senior management of Digby meets to determine their investment plan for...
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Finance
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 2.46. Assume the stock can be issued at yesterday's stock price $18.76. Which of the following statements are true? (Select 2 answers) Total Assets will rise to $141,142,019 Digby will issue stock totaling $937,806 Long term debt will increase from $34,848,427 to $35,786,233 Total investment for Digby will be $2,306,181 Digby bond issue will be $48,365 Digby working capital will be unchanged at $16,225,886
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