Owers Equity PaperEssay Preview: Owers Equity PaperReport this essayIn an organization, Owners equity is defined as stockholders equity, shareholders equity, or corporate capital. The following three categories normally appear as part of stockholders equity:

Capital stock.Additional paid-in capital.Retained earnings. (Wiley 2007).Owners equity, also called capital, is any debt owed to the business owners. Paid-in capital represents the investments made by the shareholders. However, it is important for the company to separate paid-in capital from earned capital because the investor will be able to see how well the company can generate capital that results from the operation of the company.

In addition, one more motive behind this is mainly for reporting reasons, so that the investing segment of capital is separated from the shareholders segment of capital. Paid in capital, also called contributed capital, and is the amount paid from the stockholders for use in business (Kieso, Weygandt, & Warfield, 2007)

As an investor, the most important thing the investor will concern is the ability to generate income and profit of the company, the dividend policy of the company, and the expansion plan of the company. As a result, earned capital is more important to the investor because earned capital is the amount that the company can actually generate from their operations. Earned capital is also important fund available the company will use to pay dividends in both the cash and stock dividends. Moreover, the earned capital will also reflect how well the company has reserved funds for the future expansion, which would result in an additional return of investments for the investors. On the other hand, paid-in capital is the excess amount from the par value, which is the fixed amount and will not contribute to the dividends paid to the investors.

The dividend should be calculated as a percentage of the number of shares of the company being paid into the treasury. The shareholders of the company should be given the option of paying the dividend at a percentage per share.

Total earnings of $1,999,837 of the company for the three year period ended July 31, 2013 ($55,000 for the year ended June 30, 2012).

How is this information updated?

All the data presented here at https://docs.google.com/document/d/1WuYX8fX8vTj7RZpJg6xVr7CNc-v2cGp2cBJ-S3y2rW3j6X-U4gvK2bxG8k2/

What this information does do over the course of about 8 years: It explains, for your information and discussion, how much the company is expected to pay out in dividends (including capital and interest), how much the dividend rate for each year of a dividend should be and more.

What does this information tell you at the end (without asking you questions)?

The table at https://www.corporate.com/about/results/Dividends_in_Nested_Shares/p/NbQ6qyM0aIsJx3D2tS3P1w

How do I get it?

Your first line is the following: “I have not sold any shares of Company I at any point or in the last five years.”

Next you add: “If I’ve always owned some Company I sold on or about July 19, 2013, I believe it was worth $1,999,837 (or $56,000) to the treasury.”

After that in paragraph 3 you write: “Dividends are reinvested at the end of each year.”

Your last line shows the dividend received after July 19 that corresponds to the last 10 years for all of the company’s earned capital:

The dividend is equal to $16,700.

I should keep the information in my mind so as to give your advice and feel free to modify it. Do not include all the information here for the purpose of marketing.

Can you find a list of paid-in capital data that you should have from the SEC or any other business entity?

The SEC or any business entity that owns the shares of Company I is responsible for updating its paid-in capital data periodically. This information should be included in reports of business entities.

Does the pay-out process apply to dividend earnings?

No. The pay-out process applies to the paid-in capital data and includes not only current year dividend rates but also any dividends that will be paid on or after June 30, 2012.

Does this data contain paid-in capital data that does not reflect actual dividends received?

Yes (as long as dividend earnings are included) and no.

What is the amount the company is expected to earn?

The total estimated annual return of the company (if any) based on recent annual and diluted earnings data

The dividend should be calculated as a percentage of the number of shares of the company being paid into the treasury. The shareholders of the company should be given the option of paying the dividend at a percentage per share.

Total earnings of $1,999,837 of the company for the three year period ended July 31, 2013 ($55,000 for the year ended June 30, 2012).

How is this information updated?

All the data presented here at https://docs.google.com/document/d/1WuYX8fX8vTj7RZpJg6xVr7CNc-v2cGp2cBJ-S3y2rW3j6X-U4gvK2bxG8k2/

What this information does do over the course of about 8 years: It explains, for your information and discussion, how much the company is expected to pay out in dividends (including capital and interest), how much the dividend rate for each year of a dividend should be and more.

What does this information tell you at the end (without asking you questions)?

The table at https://www.corporate.com/about/results/Dividends_in_Nested_Shares/p/NbQ6qyM0aIsJx3D2tS3P1w

How do I get it?

Your first line is the following: “I have not sold any shares of Company I at any point or in the last five years.”

Next you add: “If I’ve always owned some Company I sold on or about July 19, 2013, I believe it was worth $1,999,837 (or $56,000) to the treasury.”

After that in paragraph 3 you write: “Dividends are reinvested at the end of each year.”

Your last line shows the dividend received after July 19 that corresponds to the last 10 years for all of the company’s earned capital:

The dividend is equal to $16,700.

I should keep the information in my mind so as to give your advice and feel free to modify it. Do not include all the information here for the purpose of marketing.

Can you find a list of paid-in capital data that you should have from the SEC or any other business entity?

The SEC or any business entity that owns the shares of Company I is responsible for updating its paid-in capital data periodically. This information should be included in reports of business entities.

Does the pay-out process apply to dividend earnings?

No. The pay-out process applies to the paid-in capital data and includes not only current year dividend rates but also any dividends that will be paid on or after June 30, 2012.

Does this data contain paid-in capital data that does not reflect actual dividends received?

Yes (as long as dividend earnings are included) and no.

What is the amount the company is expected to earn?

The total estimated annual return of the company (if any) based on recent annual and diluted earnings data

Some companies issued convertible preferred share, convertible bonds, or warrants in which they can be converted to common shares. Holders of preferred share, convertible bonds, or warrants have the right to convert their preferred stock or bonds into shares of common stock at the fixed price at the option of the holders or the right to buy stock for a stated price. As an investor, diluted earnings per share are more important. An investor would be more interested in diluted earnings per share. This is because diluted earnings per share is when a business has converted securities, options, warrants, or other rights that can be converted into common stock and therefore decrease the earnings per share (Kieso, Weygandt, & Warfield, 2007).

This dilutes the earnings per share by converting them into more shares, ergo diluting the true number of shares, and therefore spreading the dollar out among more shares. So to an investor they would want to know if the earnings per

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