Answer:
A) Total investment for Digby will be $2,518,806
D) Long term debt will increase from $33,862,062 to $34,888,934
Explanation:
The current Long-term debt is $33,862,062
Digby issues new shares of 50,000 with stock price $20.54.
50,000 shares * $20.45 = $1,027,000
Assets of Digby will rise by,
Assets / Equity = 2.45
Assets / $1,027,000 = 2.45
Assets = 2.45 * $1,027,000
Assets = $2,516,150
