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 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

 



honeyd


11-09-20 | 10:00:26

Total Assets will rise to $207,341,821
Total liabilities will be $130,138,340
Chester’s long-term debt will rise by $10,000,000

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