Question

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 2.7. which of the following statements are true? select all that apply.

Answer 1

If it is assumed that the bonds are issued at face value and leverage changes to 2.7, the statement that is true is that all the three of the given total assets are going to increase and will add $212,736,871.