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Business, 06.08.2021 21:50 annamcveigh50

It is January 2nd. 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 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 2.45. Assume the stock can be issued at yesterday's stock price $18.94. Which of the following statements are true? A. Total investment for Digby will be $5,609,250.
B. Long term debt will increase from $85,118,430 to $87,195,930
C. Total Assets will rise to $230,641,000.
D. The Digby Working Capital will be unchanged at $15,388
E. The Digby bond issue will be $3,531,750
F. Digby will issue stock totaling 2,077,500.

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It is January 2nd. Senior management of Digby meets to determine their investment plan for the year....
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