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 ofstock plus a new bond issue. Assume the stock can be issued at yesterday's stock price ($33.55) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.Select: 3- Total liabilities will be $123,713,264-The total investment for Digby will be $206,542,591- Total Assets will rise to $217,831,113- Working capital will remain the same at $10,349,434- Equity will be $80,313,076- Digby will issue stock totaling $2,516,250

To determine which statements are true, let's break down the information - Digby will fully fund a…

Answered: It is January 2nd and senior management…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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