Book Value Liabilities Formula
The book value per share is the minimum cash value of a company and its equity for common shareholders.
Book value liabilities formula. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. The formula for book value per share requires three variables. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.
Total equity preferred equity and total outstanding shares. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
It can be defined as the net asset value of the firm or of the company that can be calculated as total assets less intangible assets that is goodwill patents etc and liabilities.