It is january 2nd. 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 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 2.8. assume the stock can be issued at yesterday’s stock price ($34.67). which of the following statements are true? check all that apply.

select: 3

-long term debt will increase from $84,365,920 to $86,099,420

-total investment for chester will be $4,853,800

-the chester working capital will be unchanged at $12,734

-total assets will rise to $228,580,000

-the chester bond issue will be $3,120,300

-chester will issue stock totaling $1,733,500