Question
HELP PLEASE !! With explanation It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. They decide to
HELP PLEASE !! With explanation
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 2.46. Assume the stock can be issued at yesterday's stock price $22.15. Which of the following statements are true? (Select 2 answers) -Long term debt will increase from $33,316,395 to $34,423,698 (X) -Digby will issue stock totaling $1,107,303 (X) -Total Assets will rise to $148,515,681 -Total investment for Digby will be $2,727,306 -Digby working capital will be unchanged at $17,427,385 -Digby bond issue will be $48,521
Plant Details Summary Report The summary report serves as a snapshot of the industry, your company and your competitors. You can quickly review how your company is performing against the competition, scan ratios for areas of threat, and analyze high-level market share breakdowns. Markot Charo \begin{tabular}{lcccc} \hline & & & & \\ Americas & Andrews & Baldwin & Chester & Digby \\ \hline Sales & $38,370,544 & $100,258,037 & $67,515,700 & $64,762,136 \\ Variable Costs & $25,586,745 & $61,166,479 & $37,353,700 & $31,556,049 \\ Depreciation & $7,244,000 & $6,498,667 & $12,033,333 & $9,170,667 \\ SG\&A: Sales & $9,800,957 & $9,110,374 & $10,316,932 & $11,778,341 \\ Other & $40,875 & ($438,937) & $477,325 & ($1,737,249) \\ EBIT & ($4,302,032) & $23,921,454 & $7,334,410 & $13,994,327 \\ Interest & $5,950,771 & $7,170,927 & $10,016,512 & $7,362,674 \\ Taxes & ($3,588,481) & $5,862,684 & ($938,736) & $2,321,079 \\ Profit Sharing & $0 & $217,757 & $0 & $86,211 \\ \hline Net Profit & ($6,664,322) & $10,670,086 & ($1,743,366) & $4,224,363 \\ \hline \end{tabular} \begin{tabular}{lcccc} Europe & & & & \\ & Andrews & Baldwin & Chester & Digby \\ \hline Sales & $39,593,127 & $97,136,354 & $60,392,150 & $51,814,892 \\ Variable Costs & $27,682,015 & $73,091,755 & $42,879,801 & $40,223,304 \\ Depreciation & $0 & $0 & $0 & $0 \\ SG\&A: Sales & $8,451,948 & $7,523,705 & $8,511,207 & $8,788,306 \\ Other & $0 & $0 & $0 & $0 \\ EBIT & $3,459,164 & $16,520,895 & $9,001,141 & $2,803,282 \\ Interest & $0 & $0 & $0 & $0 \\ Taxes & $2,888,623 & $9,657,822 & $5,598,012 & $3,228,721 \\ Profit Sharing & $11,411 & $137,261 & $68,063 & $0 \\ \hline Net Profit & $559,130 & $6,725,811 & $3,335,067 & ($425,438) \\ \hline & & & & \end{tabular} \begin{tabular}{lcccc} Asia Pacific & & & & \\ & Andrews & Baldwin & Chester & Digby \\ \hline Sales & $43,563,531 & $77,501,454 & $64,017,419 & $0 \\ Variable Costs & $28,020,043 & $58,693,438 & $62,274,474 & $0 \\ Depreciation & $0 & $0 & $0 & $0 \\ SG\&A: Sales & $7,979,741 & $8,136,261 & $7,036,584 & $0 \\ Other & $0 & $0 & $0 & $0 \\ EBIT & $7,563,747 & $10,671,755 & ($5,293,639) & $0 \\ Interest & $0 & $0 & $0 & $0 \\ Taxes & $1,890,937 & $2,667,939 & ($1,323,410) & $0 \\ Profit Sharing & $113,456 & $160,076 & $0 & $0 \\ \hline Net Profit & $5,559,354 & $7,843,740 & ($3,970,229) & $0 \\ \hline \end{tabular}
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