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It is January 2nd. Senior management of Baldwin meets to determine

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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 2.8. Assume the stock can be issued at yesterday?s stock price ($33.52). Which of the following statements are true? Check all that apply.;Select: 3;Long term debt will increase from $83,907,118 to $85,583,118;Total Assets will rise to $226,187,000;The Baldwin bond issue will be $3,016,800;Baldwin will issue stock totaling $1,676,000;The Baldwin Working Capital will be unchanged at $12,048;Total investment for Baldwin will be $4,692,800

 

Paper#33835 | Written in 18-Jul-2015

Price : $27
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