The bonds are issued at face value and leverage changes

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Reference no: EM131992793

It is January 2nd and senior management of Baldwin 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 2.7. Which of the following statements are true? Select all that apply.

Baldwin’s long-term debt will rise by $10,000,000

Working capital will remain the same at $13,204,535

Total liabilities will be $130,799,470

Total Assets will rise to $209,539,649

The total investment for Baldwin will be $13,058,351

Reference no: EM131992793

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