Book Value Per Share Example Problems

5 cumulative preference share capital par value p100. Using the previous example assume that the company repurchases 500 000 common stocks from its shareholders. Company xyz has a book value of rs 100.

book recommendations 2020 thriller book recommendations 2020 ya book report cereal box template book recommendations 2020 uk book reader stand holder book publishing subscription service book reader gift ideas book reader for visually impaired

Book Value Per Share Bvps Overview Formula Example

How To Calculate The Book Value Per Share Price To Book P B Ratio Using Market Capitalization Youtube

Book Value Formula How To Calculate Book Value Of A Company

Earnings Per Share Formula Examples How To Calculate Eps

Book Value Of Equity Per Share Bvps Definition

Book Value Definition Example Investinganswers

The numerator is the net income available for common stockholders i e net income less preferred dividend and the denominator is the average number of shares of common stock outstanding during the year.

Book value per share example problems. 25 000 shares issued and outstanding p2 500 000 ordinary share capital par value p35 100 000 shares issued and outstanding 3 500 000 share premium 1 250 000 retained earnings 3 000 000 dividends in. In other words it is the ratio of available common equity to the number of outstanding common shares. It will reduce the current shares outstanding to 2 5 million 3 000 000 500 000.

It means if the company xyz is out of business and is liquidated today will leave rs 100 to all its share holder. Book value per share problems 1. Book value per share is a measure of the amount of equity that s available to common shareholders on a per share basis.

Still it can be trading in the market at rs 70 discount to book value. Earnings per share ratio eps ratio is computed by the following formula. Indian stock market the book value is per share value i e.

Preference share capital 12 100 par 1 000 000 ordinary share capital p100 4 000 000 share premium 2 000 000 retained earnings 1 000 000 dividends have been paid on the preference share up to december 31 2011. Bsa 2102 intermediate accounting 1 2 book value per share problem 1 abra company reported the following shareholders equity at year end. One of the main ways of increasing the book value per share is to buy back common stocks from shareholders.

Let s break it down to identify the meaning and value of the different variables in this problem. Book value per share bvps is a measure of value of a company s common share based on book value of the shareholders equity of the company. What would the book value per share be.

We can apply the values to our variables and calculate the book value per share. The shareholder s equity of endless company on december 31 2013 showed the following balances. Mostly the book value is calculated for common stock only.