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.
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