Determine their investment plan for the year

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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 ($41.27) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

Reference no: EM131588312

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