Week 4b Reflection

Team A Week 4 Reflection ACC/291 kinsfolk 19, 2011 Corporations a great deal rely on the trade of company derivation to halt the capital needed for heterogeneous business ventures. When issuing rake a company essential(prenominal) be mindful of the issuing of sh ars to authorize, the type of stock to offer, and the issuance price to assign. There are normally two types of stock issued by a corporation, favored and common. Preferred stocks have near advantages over common stock, such as the distribution of loot and dividends to the preferred stockholders first. Second, in the proceeds of a liquidation of a corporation the preferred stockholders would get hold assets of the corporation in front common stockholders. A disadvantage would be they do non have voting rights but do contain a cumulative dividend feature. Common stocks have voting rights, but must wait until prior obligations are met before they percentage in dividend s. The price of an organizations stock is determined by market forces that rate supply and demand. If an organizations stock is a animated buy, this will rip more investors which will result in a high stock price than the market value. A commonly utilize regulation to calculate stock prices is footing per Share = (Assets Liabilities + prox Earnings) / Number of Shares.

To calculate future earnings, an organizations historical earnings, the given market, and financial condition should be considered. Dividends are the type of the earnings and net profit that the company makes over time and is comp ensable to the shareholders. The step of ! dividends give to a shareholder depends on the amount of shares that some one holds of a company. This is a way for investors to be repaid for their contributions to the company. The formula for calculating dividends per share is DPS = (D SD) / S. Dividends per share = (Sum of dividends paid over a period special, one time dividends) / Number of ordinary shares. A stock break-dance is similar to a stock dividend because it...If you indispensableness to get a full essay, order it on our website: OrderCustomPaper.com

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