The Book Value Of Equity Increased By

Book value of equity per share effectively indicates a firm s net asset value total assets total liabilities on a per share basis.

The book value of equity increased by. The sampling method used in this research is purposive sampling method of sampling based on certain criteria. This means if the company dissolves the shareholders will receive an amount per share as per book value per share. Book value is calculated by taking the difference between assets and liabilities on the balance sheet.

It is also known as shareholders equity or net worth and can be derived from the accounting equation assets liabilities shareholder s equity. Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. For the purpose of analysis the book value of equity is further divided by a total number of shares to make book value per share.

The market value of an asset is assigned by the. This article has been a guide to what is book. This study aims to examine empirically the effect of book value equity per share dividend per share and net profit margin on stock price mining company in the indonesia stock exchange.

That was selected seventeen mining companies in the sample were then performed multiple. Book value of equity is an important concept because it helps in the interpretation of the financial health of a company or firm as it is the fair value of the residual assets after all the liabilities are paid off. The book value of an asset is strictly based on the balance sheet or books of the company.

A company can also increase the book value per share by using the generated profits to buy more assets or reduce liabilities. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. When a stock is undervalued it will have a higher book value.