Book Value Per Share Of Preferred Stock Formula

The preferred stock shown above in the stockholders equity section is cumulative and dividends amounting to 48 000 are in arrears.

Book value per share of preferred stock formula. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares. Calculate book value per share from the following stockholders equity section of a company. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself.

The book value per common share formula below is an accounting measure based on historical transactions. Net income on a per share basis is referred to as eps or earnings per share. Bvps frac total shareholder equity preferred equity total outstanding.

Outstanding the formula requires you to know the company s total equity. The following formula can be used to determine value of a share of standard preferred stock. Of shares outstanding substituting the calculated values we get book value per share 193 000 60 000 3000 10 000 13 per share of common stock.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. If the value of bvps exceeds the market value per share the. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.

Calculate the total book value of a corporation s preferred stock by multiplying the book value of each share by the total number of shares outstanding. Where vp is the value price of a share of preferred stock dp is the annual dividend per share of preferred stock kp is the required rate of return p is the par value per share of preferred stock and dp is the annual preferred dividend rate. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued.

The new formula for book value per share stockholders equity preferred stock arrears no. This procedure can be summed up in the form of the following formula. The equity is the total number of assets after liabilities are subtracted.