It is January 2nd and senior management of Baldwin meets to determine their inve

Question

It is January 2nd and senior management of Baldwin 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 ($42.57) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

Select: 3 Total liabilities will be $150,548,149 Total assets will rise to $238,527,765 Working capital will remain the same at $16,224,801 The total investment for Baldwin will be $25,924,850 Baldwin will issue stock totaling $3,192,750

Explanation / Answer

Option A, B and E are Correct.

Baldwin will issue stock totaling = 75000*42.57 = $3192750

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.