Prepare a 700- to 1,050-word response to the following questions:
Must include thorough introduction and conclusion
- Why is it important to keep paid-in capital separate from earned capital?
- As an investor, is paid-in capital or earned capital more important? Explain why.
- As an investor, are basic or diluted earnings per share more important? Explain why.
Format your paper consistent with APA guidelines.
This is the book we are using in class: Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2013). Intermediate accounting (15th ed.). Hoboken, NJ: John Wiley & Sons.
PART II- THIS PART I NEED BY FRIDAY AUGUST 19,2016
DISCUSSION QUESTIONS
Stock Options
Why do companies offer stock options? Should stock option compensation be included as an expense when calculating an organization's net income? Explain why or why not. If so, how should the amount of expense be calculated?
Dividends
What are the different types of dividends that a company can pay out? Which type would you prefer? Explain why. When should a company pay dividends?
Stock
What are some similarities and differences between common stock and preferred stock? As a shareholder, would you want preferred or common stock? Explain why. As a corporation, would you rather issue preferred or common stock? Why?
Stock Split
What is the purpose of a stock split? What are some benefits of a stock split for a company? What are some benefits for an investor? What is the effect to the market value of a stock?
