Book Value Per Share Preferred Stock

Total equity preferred equity and total outstanding shares.

Book value per share preferred stock. The book value per preferred share is calculated by dividing the call price or par value plus the cumulative dividends in arrears by the number of outstanding preferred shares. To find the equity you should subtract the company s liabilities from its assets. When calculating the book value per share of a company we base the calculation on the common stockholders equity stockholders equity stockholders equity also known as shareholders equity is an account on a company s balance sheet that consists of share capital plus and the preferred stock should be excluded from the value of equity.

It is because preferred stockholders are ranked higher than common stockholders during liquidation. This will give you the amount of net assets that each preferred share owns or has the rights to. In other words divide the applicable equity by the number of shares.

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. The book value per share is the minimum cash value of a company and its equity for common shareholders.