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 2.7. Assume the stock can be issued at yesterday’s stock price ($38.41). Which of the following statements are true? Check all that apply. Select: 3 Total investment for Digby will be $5,185,350 The Digby bond issue will be $3,264,850 Long term debt will increase from $83,481,346 to $85,401,846 The Digby Working Capital will be unchanged at $16,310 Digby will issue stock totaling $1,920,500 Total Assets will rise to $228,175,000

Business

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Bragmore is a successful businessman who

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Bragmore ought to lend his extra set of goggles to his main competitor Aprince and engage in fair play.

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Success is significant in competition; however, what matters more is fairness and competing vigorously with rivals, giving everyone equal opportunities to showcase their strengths and abilities. Although withholding goggles from his main competitor might enhance Bragmore's chances of easily winning and securing the cash prize, that wouldn't constitute a fair competition. Therefore, he should compete by providing equal chances for his competitor and lend them his spare goggles.

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The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each y

marusya05 [3725]

Response:

Year Nominal wage Real wage Price level Inflation rate

1 $7 $5 140 None

2 $9 $6 150 7.14 %

3 $12 $7.5 160 6.67 %

Explanation:

Note: A visual representation of the table is also provided.

The price level for Year 1 is calculated as (Nominal wage in year 1/Real wage in year 1) multiplied by 100.

Thus, Price level in Year 1 = ($7.00 / $5.00) * 100

Resulting in Price level in Year 1 = 1.4 times 100

Which gives Price level in Year 1 = 140

To find Real wage in Year 2: (Nominal wage in year 2 / Price level in year 2) multiplied by 100.

Which gives Real wage in Year 2 = ($9.00 / 150.00) * 100

Thus, Real wage in Year 2 = $6

To calculate Nominal wage in Year 3: (Real wage in Year 3 * Price level in Year 3) divided by 100.

As a result, Nominal wage in Year 3 = $1,200 / 100

Leading to Nominal wage in Year 3 = $12

To determine Inflation rate in Year 2: (Price level in Year 2 - Price level in Year 1) divided by Price level in Year 1.

Therefore, Inflation rate in Year 2 = 10 / 140

Giving Inflation rate in Year 2 = 0.0714, or 7.14 %

For Inflation rate in Year 3: (Price level in Year 3 - Price level in Year 2) divided by Price level in Year 2.

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