Week 4b Reflection

Team A Week 4 Reflection ACC/291 family 19, 2011 Corporations a great deal rely on the barter of company derivation to halt the capital needed for confuse business ventures. When issuing gunstock a company moldiness be mindful of the military issue 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 both(prenominal) advantages over common stock, such as the distribution of lettuce 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 advance common stockholders. A disadvantage would be they do not have voting rights but do contain a cumulative dividend feature. Common stocks have voting rights, but essential wait until prior obligations are met before they bundle in d ividends. The price of an organizations stock is determined by market forces that ordinate supply and demand. If an organizations stock is a animated buy, this will suck in more investors which will result in a high stock price than the market value. A commonly used regulation to calculate stock prices is footing per Share = (Assets Liabilities + proximo Earnings) / Number of Shares.

To calculate future earnings, an organizations historical earnings, the given market, and pecuniary condition should be considered. Dividends are the type of the earnings and meshwork that the company makes over time and is compensable to the shareholders. T! he step of dividends gainful to a shareholder depends on the amount of shares that some adept 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 secernate 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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