Determine their investment plan for the year

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Reference no: EM132033005

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 ($29.87) and leverage changes to 2.8. Which of the following statements are true? Select all that apply. Working capital will remain the same at $10,688,701 The total investment for Digby will be $201,009,204 Total liabilities will be $120,090,962 Digby will issue stock totaling $2,240,250 Total Assets will rise to $214,025,676 Equity will be $78,677,991.

Reference no: EM132033005

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