Q1 It is January 2nd and 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 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($42.88) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3

Total assets will rise to $238,402,639

Working capital will remain the same at $15,741,774

The total investment for Digby will be $25,231,821

Total liabilities will be 150,897,080

Digby will issue stock totaling $3,216,000

Q2 Digby's turnover rate for this year is 6.25%. This rate is projected to remain the same next year and no further downsizing will occur from automating. What would the total recruiting cost be for Digby, assuming it spends the same amount extra above the $1,000 recruiting base as they did this year?

Select: 1

$2,730,251

$313

$204,805

$170,671

Q3

Andrews Corp. ended the year carrying $90,474,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?

Select: 1

	$90,474,000
	$218,782,600
	$179,330,000
	$87,562,000