Investment Plan
Not what you're looking for?
It is January 2nd. 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 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday's stock price ($32.76). Which of the following statements are true? Check all that apply.
Select: 3
A. The Baldwin bond issue will be $2,784,600
B. Long term debt will increase from $80,962,041 to $82,600,041
C. Total Assets will rise to $220,750,000
D. Baldwin will issue stock totaling $1,638,000
E. Total investment for Baldwin will be $4,422,600
F. The Baldwin Working Capital will be unchanged at $16,465
Purchase this Solution
Solution Summary
The solution explains the correct alternatives relating to the investment plan
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Operations Management
This quiz tests a student's knowledge about Operations Management
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.