Chapter 14 - C hapter 14 Weighted Average Capital- T wo...

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Chapter 14 Weighted Average Capital- Two basic forms of capital, stocks and bonds. Equity and Debt. Cost of Capital - Rate of Return, Hurtell Rate. Cost of Capital, 8%- use 8% as a min. Certain debt might need research. Common Stock---- A) Treasury Stock —Stock that has been repurchased by the company and held in its treasury. B) Issued Shares--- Shares that have been issued by the company. C) Outstanding Shares----- Shares that have been issued by the company and are held by investors D) Authorized Share Capital-- Maximum number of shares that the company is permitted to issue.
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E) Par Value- Value of Security shown in the company’s accounts. F) Additional Paid-in-capital- Difference between issue price and par value of stock. Also called capital surplus. G) Retained Earnings- Earnings not paid out as dividends . H) Par Value accoding to the lecture- Arbitary number, the accounting people put on to have historical cost. Addition to the K. Shareholders or Stockholders- Holds a number of shares of common
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This note was uploaded on 03/23/2011 for the course FINANCE 101 taught by Professor Sabrizo during the Spring '08 term at Rutgers.

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Chapter 14 - C hapter 14 Weighted Average Capital- T wo...

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