This paper concentrates on the primary theme of Stockholder’s Equity in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Select 2 companies in the same industry (for example, the home improvement industry or the candy industry). Use the Internet to find the companies’ financial statements. From the financial statements, list the different components from the Stockholder’s Equity section. Read the footnotes to the financial statements to see what they disclose about their Stockholder’s Equity section. Which parts do they have in common? Is there anything about their Stockholder’s Equity that is distinctive to the business
Stockholders equity is a main component of Companies balance sheet and it show the total ownership that accrues to the owners of the company. In the case of company’s AT&T and Verizon companies that are in the telecommunication sector, Stockholders equity follows the same structure appearing on the balance sheet and indicating the various aspects as they appear on the company’s statement. In AT&T, the total stockholders’ equity amounts to 86 billion dollars, which has been a decline from the previous year’s amount of 90 billion dollars. AT&T stockholder equity is presented as Common stock, paid in capital, retained earnings, treasury stock, and other comprehensive income.
Verizon Company also has the same components of stockholders equity on its statement however; the appearance of the figures indicates a different performance for the investors in these companies. The valuation of the common stock between these two companies is a positive, but AT&T reveals a higher amount of six billion dollars while Verizon is at around four hundred million dollars. This infers that there is a higher level of capital at AT&T compared to Verizon. The second aspect of Stockholder equity is the retained earnings, which are the profits that the company has retained for the last few years. As Bloomberg Business (2015a) shows, AT&T has a higher figure compared to Verizon, which means the company has accumulated more profits and has more funds at its disposal to make future investments. The treasury stock in both of these companies is as expected with AT&T having a higher figure compared to Verizon. Meaning the company is holding part of its stock and returns for future