The Book Value Of Equity Increased By
Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders.
The book value of equity increased by. Book value of equity is an important concept because it helps in the interpretation of the financial health of a company or firm as it is the fair value of the residual assets after all the liabilities are paid off. The sampling method used in this research is purposive sampling method of sampling based on certain criteria. That was selected seventeen mining companies in the sample were then performed multiple.
When a stock is undervalued it will have a higher book value. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. This article has been a guide to what is book.
Book value per share represents equity of the firm on per share basis. For example if abc limited generates 1 million in earnings during the year and uses 300 000 to purchase more assets for the company it will increase the common equity and hence raise the bvps. For the purpose of analysis the book value of equity is further divided by a total number of shares to make book value per share.
Book value of equity per share effectively indicates a firm s net asset value total assets total liabilities on a per share basis. From the perspective of an analyst or investor it is all the better if the balance sheet of the company is marked to market i e it captures the most current market value of the assets and the liabilities. This study aims to examine empirically the effect of book value equity per share dividend per share and net profit margin on stock price mining company in the indonesia stock exchange.
It is also known as shareholders equity or net worth and can be derived from the accounting equation assets liabilities shareholder s equity. Book value is calculated by taking the difference between assets and liabilities on the balance sheet. This means if the company dissolves the shareholders will receive an amount per share as per book value per share.