Comp xm-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 ($35.93) and leverage changes to 2.7.
Which of the following statements are true? Select all that apply.
a.Total liabilities will be 140,879,019
b.Total assets will rise to $220,546,428
c.Working capital will remain the same at $14,458,329
d. Digby will issue stock totaling $2,694,750
e. The total investment for Digby will be $21,302,587