Types of Capital (2nd attempt) Please describe the following types of capital and tell me if they are: Proprietorship, Partnership, or Corporation. Some of the types of paid-in capital are given below:Issuance of common stockIssuance of preferred stockBonus sharesRetirement of treasury stockSale of treasury stock

Q: When calculating the after-tax weighted average cost of capital, which of the following has to be…

A: Weighted average cost of capital: It implies to a rate at which the average return is expected to be…

Q: What are the four major components of stockholders' equity? Explain each component. (Click the icon…

A: The first major component of stockholder's equity is: Common stock and additional paid-in capital…

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: What are the sources of gains for bondholders Interest payments Dividends Stock split Capital gains

A: Bondholders An investor or the owner of debt instruments, which are frequently issued by…

Q: When a company decides to issue capital on the stock market what is the process called? (a) An…

A: A) An Initial Public Offering means a company issuing capital to public for the first time on stock…

Q: All of the following would appear on a Statement of        Stockholders Equity except   net…

A: Equity means the firm's owner funds. It is offered by the firm to arrange the funds. After the…

Q: Funds available to corporate issuers of commercial paper come from which market? O A. capital O B.…

A: Commercial paper is a short term source of debt for a company

Q: Which of the following does not represent a pair of GAAP/IFRS-comparable terms? a.    Additional…

A: GAAP are the general accounting principles which are to be followed by the U.S companies in…

Q: Please refer to the sample and paraphrase the ''stockholders equity''. Please write a close word…

A: Shareholders’ equity describes the net worth of the company. It consists of ordinary share capital,…

Q: 7. A corporation's par value of its stock establishing minimum legal capital. True or false

A: Shares issue is very important source of finance that is being used in business. It can be common…

Q: When a company issues a stock dividend, which of the following would be affected? Select one: O a.…

A: SOLUTION- STOCK DIVIDEND- IT IS A DIVIDEND PAYMENT TO THE SHAREHOLDERS THAT IS MADE IN SHARES RATHER…

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: EQUITY ACCOUNTS AND PAID-IN-CAPITAL Are there any other equity accounts than those listed below?…

A: Stockholders’ equity:The claims of owners on a company’s resources, after the liabilities are paid…

Q: Mutual funds ____ realized capital gains and income (e.g., dividends received). * Reinvest…

A: Mutual fund is an investment opportunity which pools money from various investors. These funds are…

Q: __________ securities are investments in preferred or common stock that represent ownership in a…

A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…

Q: Treasury shares represent the ______________________   a. Number of previously issued shares that…

A: A company issues shares in the open market. If it feels that the price of its share in the market…

Q: All of the following distributions to stockholders are considered asset or capital distributions,…

A: Capital distributions refer to the return given to the investors in the form of different dividends.…

Q: Equity Accounts Are there any other equity accounts than those listed below?  Additionally what is…

A: Equity accounts show the amount due to the owners of the business.  Equity accounts comprise of…

Q: Select the best term for each definition below. Definitions 1 Shares held by investors (shares…

A: In the world of corporate finance and stock ownership, there are several terms that are commonly…

Q: I need help with calculating the paid -in capital in excess of stated value-common stock

A: The common stock has a par value of $20 and Morrow Enterprises are authorized to issue a total of…

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: The receipt of dividends from long-term investments in stock in classified as a canh infow from…

A: The cash flow statement keeps the record of cash inflow or outflow from the business under various…

Q: f stock is issued for an asset other than cash the asset should be recorded on the books of the…

A: SOLUTION- CURRENT MARKET VALUE OF ASSET  GIVES PARTIES INTERESTED IN MAKING A TRANSACTION THE…

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.