Week 4b Reflection

Team A Week 4 Reflection ACC/291 kinfolk 19, 2011 Corporations a great deal rely on the change of company derivation to halt the capital needed for diverse business ventures. When issuing ancestry a company moldiness(prenominal) be mindful of the takings 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 almost advantages over common stock, such as the distribution of kale 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 forwards 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 dower in dividends. Th e price of an organizations stock is determined by market forces that enjoin supply and demand. If an organizations stock is a animated buy, this will rip more investors which will result in a higher(prenominal) stock price than the market value. A commonly utilise regulation to calculate stock prices is footing per Share = (Assets Liabilities + emerging 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 value that the company makes over time and is compensable to the shareholders. The step of dividends compensable to a shareholder depends on the amount of shares that some nonpareil 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 peri od special, one time dividends) / Number of! ordinary shares. A stock expose 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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