True or false question based on investment plan

Reference no: EM1356962

It is January 2nd. 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 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday's stock price ($32.76). Which of the following statements are true? Check all that apply.

Select: 3

A. The Baldwin bond issue will be $2,784,600
B. Long term debt will increase from $80,962,041 to $82,600,041
C. Total Assets will rise to $220,750,000
D. Baldwin will issue stock totaling $1,638,000
E. Total investment for Baldwin will be $4,422,600
F. The Baldwin Working Capital will be unchanged at $16,465

Reference no: EM1356962

Questions Cloud

Difference between allocated and actual overhead : Jacobs Company manufactures refrigerators. The company uses a budgeted indirect-cost rate for its manufacturing operations and during 2005 allocated $1,000,000 to work-in-process inventory. Actual overhead incurred was $1,100,000. Prepare a journa..

How much power is dissipated in cord : Two charged spheres are 19 cm apart. They are moved, and the force on each of them is found to have been quadrupled. How far apart are they now.

Show working conditions at foxconn : Working Conditions at Foxconn - Speculate on a possible challenge that one could make to this moral principle, and outline a response to that challenge.

Create application program to declare two circles : Create an application program that declares two circles set radius of one manually but allow the other to use default value supplied by constructor then display each circles values.

True or false question based on investment plan : Senior management of Baldwin meets to estimate their investment plan for the year. They decide to fully fund a plant and machine buy through issuing 50,000 shares of stock plus a new bond issue.

What monopoly sells its goods in two different markets : Assume the monopoly sells its goods in two different markets esparated by some distance. The demand curve in the first market is given by Q1=55-P1,and demand curve in second market is given by Q2=70-2P2.

Bibliotherapy as a therapeutic intervention : I am doing a paper on Bibliotherapy and how literature can be used to enhance therapy?

Entries for stock dividends and stock splits : The stockholder's equity accounts of Lawrence Company have the folowing balance on December 31, 2010. Common stock, $10 par, 274,000 shares issued and outstanding $2,740,000, Paid-in capital in excess of par $1,200,000, Retained Earnings $5,600,00..

What is the magnetic field in that region of space : A certain protein molecule is hydrolyzed by an enzyme. How would you define this statement in your own words to someone who is not familiar with chemical terminology.

User Account

All Pages