Please correct answer and don't used hand raiting It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. They decide tofully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happilynotes this will raise their Leverage (=assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday'sstock price ($30.39). Which of the following statements are true? Check all that apply.Select: 3Digby will issue stock totaling $1,519,500Total investment for Digby will be $4,102,650The Digby bond issue will be $2,583,150The Digby Working Capital will be unchanged at $13,661Total Assets will rise to $214,617,000Long term debt will increase from $81,253,490 to $82,772,990

Final Answers:Digby will issue stock totaling $1,519,500: TrueTotal investment for Digby will be…

Answered: It is January 2nd. Senior management of…

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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