It is january 2nd senior management of digby meets to


It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. The current long-term debt is equal to $33,862,062. 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 $20.54. Which of the following statements are true? (Select 2 answers)

A) Total investment for Digby will be $2,518,806

B) Total Assets will rise to $140,042,395

C) Digby bond issue will be $48,116

D) Long term debt will increase from $33,862,062 to $34,888,934

E) Digby will issue stock totaling $1,026,872

F) Digby working capital will be unchanged at $14,847,979

Request for Solution File

Ask an Expert for Answer!!
Operation Management: It is january 2nd senior management of digby meets to
Reference No:- TGS02464240

Expected delivery within 24 Hours