Book value per share of common stock is the amount of net assets that each share of common stock represents.

Some stockholders have keen interest in knowing the book value of the shares they own. This article is focused on its calculation. Mostly, the book value is calculated for common stock only.

The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. The calculation of book value is very simple if company has issued only common stock.

Free Book Value Per Share Calculator for Common Stock

The net assets i. After such modification we get the following widely used formula to calculate book value per share:.

Book Value Per Common Share

This procedure can be summed up in the form of the following formula:. Please help, how to determine share price from only shares at Hi I need help JSJ Company is intending to raise P , from issuance of new shares thru a stock right offering.

It has 12, shares outstanding. Par Value and Book Value per share are P and P,respectively.

Book Value Per Share Calculator

How many rights must be required to enable a stockholder to subscribe to one new share? Skip to content Accounting For Management.

Home Explanations Exercises Problems Calculators. What is book value?

Book Value Per Share Financial Ratio

If company has issued only common stock and no preferred stock: After such modification we get the following widely used formula to calculate book value per share: If company has issued common as well as preferred stock: This procedure can be summed up in the form of the following formula: Leave a Comment Cancel reply.

Exercise Computation of net cash flows from operating activities — indirect method. Exercise-9 Effect of transactions on statement of cash flows — indirect method. Contact us Privacy policy Copyright -