It is january 2nd. senior management of chester 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 2.8. assume the stock can be issued at yesterday’s stock price ($34.67). which of the following statements are true? check all that apply.

select: 3

-long term debt will increase from $84,365,920 to $86,099,420

-total investment for chester will be $4,853,800

-the chester working capital will be unchanged at $12,734

-total assets will rise to $228,580,000

-the chester bond issue will be $3,120,300

-chester will issue stock totaling $1,733,500

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.