One major component of Equity is Contributed Capital. What does Contributed Capital represent? Group of answer choices If the company took all of their assets and paid off all of their liabilities, this is what would be remaining. This represents the amount of cash currently in the company that belongs to the owners. This represents the value of what the owners put into the company, when they put it in. This represents all of the profits (minus all of the losses), minus dividends paid out to owners, that have been kept in the company. This represents the amounts the company owes to the owners, plus whatever interest rate they agreed to pay.

The calculations in step 2 is very hard to read. Can it be written more clearly, please?

Comment critically on the following statement:   ‘Equity only increases or decreases as a result of the owners putting more cash into the business or taking some out.’

How and why should the cost of capital change when the Company must rely on new issues of common stock v retained earnings when obtaining capital from equity?

(Multiple Choice) The main difference between retained earnings and contributed capital is that:   1. Retained Earnings is an expense, while Contributed Capital is part of Shareholders' Equity   2. Contributed Capital is the income earned by the company over time (minus dividends), while Retained Earnings is the money invested in the company by shareholders   3. None of the answers are correct   4. Retained Earnings is the income earned by the company over time (minus dividends), while Contributed Capital is the money invested in the company by shareholders   5. Only Retained Earnings increases when shares are reacquired

Please could you give me detail about  The weighted average cost of capital up to the point when retained earnings are exhausted. The weighted average cost of capital after all retained earnings are exhausted.

Which of the following transactions would not create a cash flow? Payment of a cash and stock dividend A company buying back some of its own stock from a shareholder O Depreciation of building for the period Sale of equipment at book value (i.e., no gain or loss)

True of False? Contributed capital decreases when the company has a net loss. If your answer is “False”, then explain (in one sentence) why the statement is false.

In looking at Free Cash Flow, which of the following is true? The value of any asset business is based solely on the free cash flow and it is important to buyers and sellers. FCF's are the discounts received from vendors for purchases made The net income of a company should be equal to its free cash flow. FCF's represent the funds available to business owners that can be withdrawn after all business related costs and investments have been paid.