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 2.8. Which of the following statements are true? Select all that apply.
Select : 3
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- The total investment for Digby will be $14,725,995
- Total liabilities will be $130,319,501
- Digby’s long-term debt will rise by $10,000,000
- Working capital will remain the same at $10,677,344
- Total Assets will rise to $205,345,005
Jos Simulation Answered question April 8, 2025
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