Digby encounters to determine their investment plan

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It is January 2nd. Senior management of Digby encounters to determine their investment plan for the year. They choose to fully fund a plant as well as 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 2.8. Accept the stock can be issued at yesterday's stock price ($35.41). Which of the subsequent statements are true? Check all that apply

Reference no: EM1375519

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