List the values commonly associated with capital stock and give their definitions.

List the values commonly associated with capital stock and give their definitions.

Solutions

Expert Solution

In capital stock there are values :-

1. Common stock - Common stock are the shares/stocks held by the investors which give them the voting rights. Technically, common stock holders are the owners of the company. It is calculated by multiplying the number of shares outstanding with the par value of the common stock.

2. Additional paid-in capital - It includes the premium amount on the shares issued. Often times, the company issue there shares at premium. Premium is the amount charged by the company in excess of par value. It is calculated by multiplying the premium on the shares by the number of shares issued at premium.

3. Retained earnings - It is the amount of net income left with the company after distribution of dividends. Company can use this amount for expansion of business.

4. Preferred stock- they are the stocks which are issued by the company. They are similar to common stock but they get preference over common stock stockholders at time of distribution of dividend or distribution of assets at the time of liquidation. It is calculated by multiplying the number of shares outstanding by the par value of the preferred stock.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The author lists three types of waste. List the three with the given definitions. Give a...

The author lists three types of waste. List the three with the given definitions. Give a real world example of each type of waste.

1. Give the values of the quantum numbers associated with the 3d orbital ? 2. What's...

1. Give the values of the quantum numbers associated with the 3d orbital ? 2. What's the diffrence between a 3 Px orbital anda 3 PY orbital ? explain using quantam numbers ?

How is perception defined? Are there several definitions? If so, then list all the definitions you...

How is perception defined? Are there several definitions? If so, then list all the definitions you have found and give an example of each one. How does perception influence our world and our daily interactions with one another? Give at least two examples of this. In your opinion is the phrase, "Perception is reality" a truth or fallacy? Why or why not? As you complete the exercises and visit the websites, do you find that your own definition and personal...

Please explain the terms commonly associated with networking in a paragraph or two.

The terms diversity and inclusion have a number of definitions and concepts associated with them. In...

The terms diversity and inclusion have a number of definitions and concepts associated with them. In your own words, define the terms diversity and inclusion. There are numerous benefits and advantages of having a diverse workplace environment, especially in healthcare. Discuss in detail two benefits or advantages to having a diverse and inclusive workforce environment and how each improves patient experience and outcomes. Lastly, identify and describe a situation that you might encounter in your role as an allied healthcare...

Give an example of each a commonly owned substitute and commonly owned complement (please note the...

Give an example of each a commonly owned substitute and commonly owned complement (please note the spelling of complement, different from a compliment you give someone, a complement goes with something else, in geometry complementary angles sum together to equal ninety degrees). You must list the company owning (not a retailer selling two different products as the retailer only owns the inventory and not the brand) each product. For example, both Tide and Cheer laundry detergents are manufactured by Procter...

What is the payback period, how is it calculated, what weaknesses are commonly associated with the...

What is the payback period, how is it calculated, what weaknesses are commonly associated with the use of the payback period to evaluate a proposed investment? PLEASE MINIMUM 350 word.

Several definitions exist for various words in reasoning and communication but each one is associated with...

Several definitions exist for various words in reasoning and communication but each one is associated with some challenges. With your knowledge in critical thinking, examine with practical examples the six (6) types of definitions with their challenges and the general reasoning problems associated definition.

1. What are the four types of hazards commonly associated with the workplace? 2. What is...

1. What are the four types of hazards commonly associated with the workplace? 2. What is the role of the occupational nurse? 3. What are the components of the epidemiologic triad? 4. What are the steps of a root cause analysis?

List and define common market multiples used to value a stock/company. Explain whether each values the...

List and define common market multiples used to value a stock/company. Explain whether each values the company as a whole or the stock. Why might we use one particular multiple instead of another? What is the most difficult part of implementing a market multiple valuation method? Explain the issues that you need to consider when valuing a company using market multiples. Perform simple valuation calculations using multiples.

Subjects