Reference no: EM132623824
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 ($34.82) and leverage changes to 2.7. Which of the following statements are true?
Select all that apply.
Working capital will remain the same at $16,056,456
Digby will issue stock totaling $2,611,500
The total investment for Digby will be $204,833,945
Equity will be $82,846,408
Total Assets will rise to $216,634, 252
Total liabilities will be $119,376,037