Reference no: EM132571264
Question 1: It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.8. Which of the following statements are true? Select all that apply.
Select: 3
Option a-Chester's long-term debt will rise by $10,000,000
Option b-The total investment for Chester will be $14,250,921
Option c-Total Assets will rise to $206,054,079
Option d-Working capital will remain the same at $10,001,569
Option e-Total liabilities will be $130,945,147