text to provide the answers. Why is it important to keep paid-in capital separate from earned capital? It is important to distinguish between paid-in capital and earned capital in order to understand why the two should be kept separate. Paid-in capital‚ which is also referred to as contributed capital‚ "Is the total amount paid in on capital stock." This is money received from investors to purchase stock in the company. Earned capital is not monies received from outside investors. It is‚ "the
Premium Finance Stock Stock market
Paid in Capital vs. Earned Capital Earned capital and paid in capital are two important items for investors. Earned capital comes from any profits the operation gathers. Paid in capital is the amount of investment a shareholder has contributed to the business for use (Business Finance‚ 2008). The following paragraphs will contribute a more detailed definition of what these two components are used for and why they are important. This essay will also touch on diluted earnings per share and basic
Premium Finance Stock market Stock
We all know that the world of sport is consisted of multimillion contracts and successful sportsmen are paid more money than other people who also do an important work for the country’s welfare. From one side it can be unfair as many scientists‚ doctors‚ policmen‚ firefighters are doing very important work. Sometimes they risk their own life to save a another life or make a discovery of some kind of medicine which can save hundred lifes and the life of successful sport professionals also. They work
Premium Professional sports Amateur sports Football
The gain on sale of a capital asset is called capital gain. This gain is not a regular income like salary‚ or house rent. It is a one-time gain; in other words the capital gain is not recurring‚ i.e.‚ not occur again and again periodically. Opposite of gain is called loss; therefore‚ there can be a loss under the head capital gain. We are not using the term capital loss‚ as it is incorrect. Capital Loss means the loss on account of destruction or damage of capital asset. Thus‚ whenever
Premium Taxation Tax Bond
HUMAN AND SOCIAL CAPITAL BY: JOSEPH KIOKO REG. NO: D80/61281/2011 DATE: 05/06/2013 LECTURER: PROF. P. O. K’OBONYO Introduction and Definitions: Human capital is defined by the OECD (1998‚ p9) as “the knowledge‚ skills and competences and other attributes embodied in individuals that are relevant to economic activity.” While Duration of schooling and levels of qualification are the standard measures used to measure human capital the OECD itself
Premium Sociology Social capital
Capital Budgeting Assignment #2 Breana N. Rainge 23. Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plan that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research‚ it has prepared the following incremental free cash flow projections (in millions of dollars): | Year 0 | Year 1-9 | Year 10 | Revenues | | 100.0 | 100.0 | -Manufacturing expenses (other
Premium Net present value Discounted cash flow
Corporate Finance and Investment 1. Define “Working Capital” Working Capital=Current Assets-Current Liabilities =Accounts Receivable + Inventory - Accounts Payable “Working capital is how much in liquid assets that a company has on hand. Working capital is needed to pay for planned and unexpected expenses‚ meet the short-term obligations of the business‚ and to build the business.” 2. Give concrete measures how w.c. can be optimized (receivable‚ inventories (JIT
Premium Generally Accepted Accounting Principles Inventory Balance sheet
CAPITAL BUDGETING AT RELIANCE CAPITAL Specialization: Finance Under the Guidance of: Submitted By: Mr. Debashish Chaudary Prarthana Bajaj Mrs. Archana Singh Nupur Singhal Utsav Goel Taruna Bhadana Arjun
Premium Net present value
WORKING CAPITAL AND FIXED CAPITAL AND ITS ADVANTAGES Introduction: A firm requires funds to acquire two types of assets : fixed assets and current assets .Fixed assets include land biulding ‚ plant‚ and machinary ‚ vehicles ‚ equipment etc.These assets relatively permanent in nature and are necessary for carrying on the bussiness .Current assets ‚on the other hand ‚are kept for supporting day-to-day operations and keep changing during the course of the business.They liquidated within short period
Premium Depreciation Inventory Generally Accepted Accounting Principles
Trust and social capital‚ which is such an attracted topic‚ which drove me to take this course‚ economy and society‚ directed plenty of discussions in today ’s global economy. Trust‚ as a bridge‚ links individuals together to be a society. It improved a better outcome to be achieved in human being life. Although cheating is everywhere‚ and I was cheated by my close friend so as to doubt whether I should trust other people or not; finally‚ I persist my belief that I should trust‚ trust other people
Premium Sociology Economics