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Topic: Business
Number of pages / Number of words: 2 / 429
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(n.d.). Paid-In Capital. Retrieved May 11, 2006 from

Kieso, D. E., Weygant, J. J., & Warfield, T.D. (2004).

Intermediate Accounting (e-book version). Hoboken, NJ:

John Wiley and Sons, Inc. Retrieved May 11, 2006 from

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This paper will address three questions. The first is “Why is it important to keep paid-in capital separate from earned capital?” The second question is “As an investor, is paid-in capital or earned capital more important?” The third question answered will be “As an investor, are basic or diluted earnings per share more important?”

Why is it important to keep paid-in capital separate from earned capital?

Paid-in capital is the amount of money that is received from investors in exchange for stock...

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