The davidson corporation's balance sheet and income statement are provided below. answer the following questions:

a. construct the statement of stockholders’ equity for december 31, 2016. no common stock was issued during 2016.

b. how much money has been reinvested in the firm over the years?

c. at the present time, how large a check could be written without it bouncing?

d. how much money must be paid to current creditors within the next year?

show all of your work and formulas for how you arrived at your answers.

balance sheet as of december 31, 2016 (millions of dollars)

assets

liabilities and equity

cash and equivalents

$15

accounts payable

$120

accounts receivable

515

accruals

280

inventories

880

notes payable

220

total current assets

$1,410

total current liabilities

$620

net plant and equipment

2,590

long-term bonds

1,520

total liabilities

$2,140

common stock (100 million shares)

260

retained earnings

1,600

common equity

$1,860

total assets

$4,000

total liabilities and equity

$4,000

income statement for year ending december 31, 2016 (millions of dollars)

sales

$6,250

operating costs excluding depreciation and amortization

5,230

ebitda

$1,020

depreciation and amortization

220

ebit

$800

interest

180

ebt

$620

taxes (40%)

248

net income

$372

common dividends paid

$146

earnings per share

$3.72

Astock is selling today for $50 per share. at the end of the year, it pays a dividend of $3 per share and sells for $58. a. what is the total rate of return on the stock? (enter your answer as a whole percent.) b. what are the dividend yield and percentage capital gain? (enter your answers as a whole percent.) c. now suppose the year-end stock price after the dividend is paid is $42. what are the dividend yield and percentage capital gain in this case? (negative amounts should be indicated by a minus sign. enter your answers as a whole percent.)

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.