It is january 2nd. 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 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 2.43. assume the stock can be issued at yesterday's stock price $23.03. which of the following statements are true? (select 2 answers) digby bond issue will be $47,165 total assets will rise to $150,947,421 digby working capital will be unchanged at $21,092,896 long term debt will increase from $35,183,502 to $36,334,880 total investment for digby will be $2,796,837 digby will issue stock totaling $1,151,378

the answer is $75.670. the answer is $75.670

1. Digby working capital will be unchanged at $21,092,896

2. Digby will issue stock totaling $1,151,378   (50,000*$23.03)

Explanation:

Digby working capital will be unchanged at $21,092,896 this because the fund to be raise is for financing a fixed asset- a plant and equipment.

Working Capital=Current Assets-Current Liabilities

Examples of current assets are Cash & Bank balances, stocks, receivables, etc.

Examples of current liabilities are payables, accrued expenses, etc.

Digby will issue stock totaling $1,151,378  i.e. (50,000*$23.03)

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!