O 0 o o CAPITAL STOCK AND ADDITIONAL PAID-IN CAPITAL Capital stock is stated at par value of the share. Proceeds and/or fair value of considerations received in excess of par value, if any, is recognized as additional paid-in capital. Incremental costs directly attributable to the issuance of new shares is deducted from the proceeds, net of tax.

Q: What type of earnings per share presentation is requiredin a complex capital structure?

A: Earnings per share:Amount available as earnings for each of the common shares outstanding for a…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: Account for the issuance of capital stock.

A: Hey there ! since the requirement part is missing, it is assumed to be a recording of journal entry.

Q: How changes in capital structure effect WACC?

A: The two types of borrowing available in capital markets are equity and debt. The concept of capital…

Q: What are the main components of a company’scost of capital?

A: Cost of capital It is essential to come back to make a capital planning venture advantageous, for…

Q: What is Financial Capital to you? Can you define financial capital and physical capital?

A: Capital Capital is referred to as anything through which the owner can confer benefit or value and…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: capital market?

A: Introduction: Financial market is a market where buyers & sellers engage in the activity of…

Q: What are the basis of common stock valuation?

A: Common stock is defined as the security, which used to represent an ownership in the company. Common…

Q: What is capital structure of a company and explain why it is important?

A: The capital structure of a company and explain why is important will be explained:

Q: What is issued capital? How does it differ from Authorized capital?

A: Company needs the funds for business purpose. Hence, Company raise capital.

Q: Describe the basic sources of corporation capital.

A: Contributed capital and retained earnings are the basic sources are corporation capital.

Q: When are dividends considered a Return of Capital? Give Code Section _______________

A: The company raises funds by issuing equity. The company issues either common shares or preferred…

Q: The selection of the appropriate concept of capital by an entity should be based on the needs of the…

A:

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

Q: How does the Paid-in capital consist primarily of?

A: Share capital of the company means all funds raised by the company in exchange of shares.  Shares…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Define the term Paid-in capital?

A: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the stockholders on the…

Q: What is the difference between a Stock Account and in equity and Paid-in-Capital account? Are they…

A: Step1: Difference between stock account, equity account and paid-in capital account. We have,Stock…

Q: When are dividends considered Ordinary Income? Give Code Section b)When are dividends considered…

A: The Internal Revenue Code includes several provisions that govern the taxation of dividends,…

Q: What are the common internal controls in place for capital expenditure cycle? with explanations

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: TOTAL LEGAL CAPITAL

A: Legal capital means the par value of shares that cannot be distributed to the shareholders.

Q: how is additional paid-in capital and common stock figures calculated

A: Additional Paid in Capital - $25,000 is the stock issue costs as given in the Question

Q: how to find paid in capital

A: It is an equity account on a company's balance sheet. .It represents the amount of money received…

Q: When does a firm said to have a complex capital structure?

A: Capital structure of a company means mixture of debt and equity sources of finance of the company…

Q: capital marke

A: common stock and corporate bonds are traded in capital market.  capital market is a place where…

Q: What is the total  amount of legal capital?

A: Legal capital of the company is that capital which is legally not allowed to leave the company or…

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: When does a firm said to have a simple capital structure?

A: The capital structure of a company means a mixture of debt and equity sources of finance of the…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…