It is January 2nd and senior management of Digby meets to determine their invest

Question

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 Save Answer The total investment for Digby will be $199,284,275 Working capital will remain the same at $14,206,286 Total Assets will rise to $211,661,493 Digby's long-term debt will rise by $9,000,000 Total liabilities will be $130,891,130

Explanation / Answer

Answer:

1. Total Assets will rise to $211,661,493

2.Digby's’s long-term debt will rise by $9,000,000

3.Total liabilities will be $130,981,130

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