It is January 2nd and senior management of Chester 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 ($32.30) and leverage changes to 2.8. Which of the following statements are true?
Select all that apply.
Select: 3
Chester will issue stock totaling $2,422,500
The total investment for Chester will be $203,718,657
Total Assets will rise to $219,902,890
Equity will be $80,959,246
Total liabilities will be $120,336,911
Working capital will remain the same at $13,395,442