help@plusacademics.org

[SOLVED] It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year.

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

Submit Answer

  •  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



honeyd


20-04-21 | 22:09:58

Equity finance=2067750
Current asset=196428000
New asset=196428000+2067750=198495750
Total liability=$120,342
Wotking capital=$50,868-$31,880=18 988
Total equity=2067750+76,086000=78153750

Login to answer this question!