Determine the investment plan for the year

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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

Reference no: EM132571264

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