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It is January 2nd. Senior management of Chester meets to det

It is January 2nd. Senior management of Chester meets to determine their investment plan for the yea… Show more It is January 2nd. 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 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 2.8. Assume the stock can be issued at yesterday’s stock price ($34.67). Which of the following statements are true? Check all that apply. Select: 3 -Long term debt will increase from $84,365,920 to $86,099,420 -Total investment for Chester will be $4,853,800 -The Chester Working Capital will be unchanged at $12,734 -Total Assets will rise to $228,580,000 -The Chester bond issue will be $3,120,300 -Chester will issue stock totaling $1,733,500 • Show less


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