Reference no: EM132489673
Question 1: It is January 2nd and senior management of Baldwin 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 ($37.42) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Show work.
A) total liabilities will be $120,841,490
B) total assets will rise to $221,334,498
C) working capital will remain the same at $17,205106
D) equity will be $84,782,240
E)total investment for Baldwin will be $208,430,231
F) Baldwin will issue stock totaling $2,806,500