The stockholders’ equity of tvx company at the beginning of the day on february 5 follows: common stock—$10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $ 600,000 paid-in capital in excess of par value, common stock 425,000 retained earnings 550,000 total stockholders’ equity $ 1,575,000 on february 5, the directors declare a 20% stock dividend distributable on february 28 to the february 15 stockholders of record. the stock’s market value is $40 per share on february 5 before the stock dividend. the stock’s market value is $33.40 per share on february 28. 1. prepare entries to record both the dividend declaration and its distribution.

2. one stockholder owned 800 shares on february 5 before the dividend. compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of february 5.

3. compute the total market value of the investor’s shares in part 2 as of february 5 and february 28.

There are about 6.8 billion people in the world, and about 11.4 billion usable hectares. currently, the population of the united states has an ecological footprint of about 9.0 hectares per person. if all people in the world were to live at the level of consumption found in the united states, the population of the world would have to in order to support them.

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.

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600