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

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

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