Book Value Per Share With Preferred Stock

Xyz stock has 15 million of stockholders equity 3 million of preferred stock and an average of 2 million shares outstanding during the measurement period.

Book value per share with preferred stock. Accounting for book value per share of common stock equity value of common stock book value per share of stock is the amount each share would receive if th. Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. The calculation of its book value per.

Total outstanding shares total number of shares issued shares as treasury stock. To find the equity you should subtract the company s liabilities from its assets. This figure represents the minimum value of a company s.

The book value of a share of preferred stock is it s call price plus any dividends in arrears. Book value per share is determined by dividing common shareholders equity by total number of outstanding shares. The formula for book value per share requires three variables.

The book value per preferred share is calculated by dividing the call price or par value plus the cumulative dividends in arrears by the number of outstanding preferred shares. Shareholders equity preferred shares. This will give you the amount of net assets that each preferred share owns or has the rights to.

Total equity preferred equity and total outstanding shares. Total number of outstanding shares. It is because preferred stockholders are ranked higher than common stockholders during liquidation.

The preferred stock shown above in the stockholders equity section is cumulative and dividends amounting to 48 000 are in arrears. When calculating the book value per share of a company we base the calculation on the common stockholders equity stockholders equity stockholders equity also known as shareholders equity is an account on a company s balance sheet that consists of share capital plus and the preferred stock should be excluded from the value of equity. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.