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 ($27.57) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.
Select : 3
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- The total investment for Baldwin will be $198,495,602
- Total liabilities will be $118,273,827
- Baldwin will issue stock totaling $2,067,750
- Working capital will remain the same at $12,698,541
- Total Assets will rise to $213,041,568
- Equity will be $78,154,024
Jos Simulation Answered question April 8, 2025
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