On january 1, 2017, kimbel inc. had these stockholders’ equity balances. common stock, $1 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) $600,000 paid-in capital in excess of par value 1,500,000 retained earnings 700,000 accumulated other comprehensive income 60,000 during 2017, the following transactions and events occurred. 1. issued 50,000 shares of $1 par value common stock for $3 per share. 2. issued 60,000 shares of common stock for cash at $4 per share. 3. purchased 20,000 shares of common stock for the treasury at $3.80 per share. 4. declared and paid a cash dividend of $207,000. 5. earned net income of $410,000. 6. had other comprehensive income of $17,000. prepare the stockholders’ equity section of the balance sheet at december 31, 2017.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?