Describe what a common stock yield is and why it is important for an investor. Describe and explain the importance of a bond yield also. How is a common stock investor and a bond investor different? What different expectations do they have? If a common dividend is not paid, what recourse do the stockholders have? What recourse do bond holders have available if bond interest payments are not made?

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.