In: Finance
It is January 2nd and 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 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday’s stock price ($37.29) and leverage changes to 2.7. Which of the following statements are true?
Select all that apply.
Select: 3
Total liabilities will be $142,817,628
Working capital will remain the same at $14,693,715
Total assets will rise to $223,510,034
Digby will issue stock totaling $2,796,750
The total investment for Digby will be $21,516,482