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

Prepare a clear and concise paper that addresses the following questions/concepts.  There is not a specific word count, but as a guide approximately 500 to 1,000 words.

  • Why is it important to keep paid-in capital separate from earned capital?
  • As an investor, is paid-in capital or earned capital more important? Explain why.
  • As an investor, are basic or diluted earnings per share more important? Explain why.

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