It is January 2nd and senior management
It is January 2nd and 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 $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
Total Assets will rise to $207,341,821
Working capital will remain the same at $11,898,413
The total investment for Chester will be $18,828,179
Total liabilities will be $130,138,340
Chester’s long-term debt will rise by $10,000,000
