Question

Digby's balance sheet has $85,185,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beDigby's book value?

Answer 1

Digby's Book Value: $

Book value of existing equity 85,185,000

Book value of additional equity 4,000,000

Net income 3,000,000

Digby's total book value 92,185,000

Step-by-step explanation:

The book value of Digby is the aggregate of book value of existing equity, book value of additional equity issued and net income.