Scott Ward wk 1 Owners’ Equity Paper

Scott Ward wk 1 Owners’ Equity Paper -...

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Owners’ Equity Paper University of Phoenix ACC/423 Instructor: Tim Malloris By Scott Ward
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For each company, there are many items to consider when taking an interest to invest. First will be a look into the difference between paid-in capital and earned capital, as well as why it is important to keep them separate. Next is seeing whether investors think paid-in capital or earned capital is more important in their decision making. Lastly, an explanation of basic and diluted earnings per share and which investor’s think is more important to them when it comes to making decisions. Each one of these is an important part of a financial equation that an investor will think about before using personal finances to support a company. When looking a company’s capital, there are two kinds to look through; one being paid-in capital and the other is earned capital. Paid-in capital is the amount of money given by investors into the company in form of stock. This is a good indication on how well investors trust this business when it comes to competing in the market of choice. Earned capital is the amount made from operations that is used to invest in the company.
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Scott Ward wk 1 Owners’ Equity Paper -...

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