Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
| LO5 – Calculate and explain the book value per share ratio. |
The book value of a share is the amount of net assets represented by one share. When referring to common shares, book value represents the amount of net assets not claimed by creditors and preferred shareholders. When referring to preferred shares, book value represents the amount that preferred shareholders would receive if the corporation were liquidated.
Book value per preferred share =
Book value per common share =
- 1193 reads
