It is January 2nd and senior management of Digby meets to determine their investment plan...
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Accounting
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 $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
Select : 3
The total investment for Digby will be $218,823,407
Total liabilities will be $141,697,562
Digbys long-term debt will rise by $9,000,000
Working capital will remain the same at $17,459,541
Total Assets will rise to $235,239,783
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