Book Value Per Share Of Common Stock Of A Manufacturing Company

After the share repurchase the company will then have 1 000 000 100 000 900 000 shares outstanding.

Book value per share of common stock of a manufacturing company. Book value per share formula above assumes common stock only. 2 576 000 800 000 48 000 100 000 shares 1 728 000 100 000 shares 17 28 per share of common stock. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued.

Therefore book value per share book value shares outstanding. If the value of bvps exceeds the market value per share the. Is not a very useful measure most of the time.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Is not a very useful measure most of the time is calculated by dividing market value per share by earnings per share reflects the fair value of the company s stock is the same as the total balance sheet asset value per share of common stock. Reflects the fair value of the company s stock.

The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. 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. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares bvps 50 000 2000 25 per share.

If there is preferred stock outstanding in the book value per share calculation above the numerator will need to be adjusted by the value of the preferred stock outstanding to get the stock holder s equity attributable to the common stock holder. Is calculated by dividing market value per share by earnings per share. The preferred stock shown above in the stockholders equity section is cumulative and dividends amounting to 48 000 are in arrears.

Book value per share of common stock of a manufacturing company. Calculate book value per share from the following stockholders equity section of a company. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity.