accounting

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explain what are the major differences between paid-in-capital and retained earnings. why do you think corporation need both types of capital?

why do you believe the guaranteed dividend income due to preferred shareholders is excluded from the eps formula? [consider what is the purpose of the eps calculation]

after reviewing slide 15-2 & 15-3 and related text material, explain why selling bonds at a discount results in the corporation recording more interest expense than if the bonds were sold at a premium, even if the the bonds have the same exact stated interest rate on the face of the bond.
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