unpaid proportion of stock valuethe amount of the nominal value of shares for which the company has not requested payment. It may not be intended that this payment should be requested unless the company goes into liquidation.
An individual’s human capital cannot, in a legal sense, be owned by a corporation; the term thus refers not only to individual talent but also to the collective skills and aptitudes of a workforce. Indeed, one challenge faced by executives is how to manage the talent of truly outstanding members of their staff: how to use it to the utmost without becoming overdependent on a few star performers, or how to encourage stars to share their skills with others By Thomas A. Stewart
In Figure 1, the balance sheet depicts the “assets” and the source of financing, and, consequently, the claim on the assets. For simplicity, we will focus on financing with a combination of debt and equity, ignoring preferred shares as a source of capital. In fact, many firms do not have preferred By John C. Groth
Figure 2 graphically illustrates the impact of capital structure on stock price, keeping in mind that as we go from no debt to an increasing D/E we are reducing the number of shares. The use of too little debt (L) results in a lower stock price, and too much debt (M) also lowers the stock price. By John C. Groth