answersLogoWhite

0


Best Answer

The sum of the par value of common stock, the capital surplus and the accumulated retained earnings.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: The book value of the shareholders' ownership is represented by?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

Is shareholders funds the same as number of shares?

Shareholders funds (also known as Equity) represent the book value of the company. For example, if a company has assets of $10MM and liabilities of $6MM, the book value of the company is $10MM - $6MM = $4MM. Book value per share is computed by dividing the book value of the company by the number of outstanding shares. For example, if the number of outstanding shares is 400,000, the book value per share is $10.


Is the book value the same as stockholders' equity?

Book Value and Shareholder Equity are not quite the same thing. To find a company's book value, you need to take the shareholders' equity and exclude all intangible items. This leaves you with the theoretical value of all of the company's tangible assets (those which can be touched, seen, and felt). For this reason, book value is sometimes also called "Net Tangible Assets". http://beginnersinvest.about.com/cs/investinglessons/l/blles3bkvalue.htm


What is a company's book value of pledged assets divided by the book value of its secured liabilities called?

Pledged assets to secured liabilities.


What about formula for market debt ratio and book devt ratio and where is market value and book value?

Market debt ratio= TL / (TL - Equity) Note : equity with market value .


What is the difference between the carring value of a depreciable asset and the trade in value?

Asset book value An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees. Not all purchased items are recorded as assets; incidental supplies are recorded as expenses. Some assets might be recorded as current expenses for tax purposes. An example of this is assets purchased and expensed under Section 179 of the US tax code. Depreciable, amortizable and depletable assets Monthly or annual depreciation, amortization and depletion are used to reduce the book value of assets over time as they are "consumed" or used up in the process of obtaining revenue.[5] These non-cash expenses are recorded in the accounting books after a trial balance is calculated to ensure that cash transactions have been recorded accurately. Depreciation is used to record the declining value of buildings and equipment over time. Land is not depreciated. Amortization is used to record the declining value of intangible assets such as patents. Depletion is used to record the consumption of natural resources.[6] Depreciation, amortization and depletion are recorded as expenses against a contra account. Contra accounts are used in bookkeeping to record asset and liability valuation changes. "Accumulated depreciation" is a contra-asset account used to record asset depreciation.[7] Sample general journal entry for depreciation[8] * Depreciation expenses: building... debit = $150, under expenses in retained earnings * Accumulated depreciation: building... credit = $150, under assets The balance sheet valuation for an asset is the asset's cost basis minus accumulated depreciation.[9] Similar bookkeeping transactions are used to record amortization and depletion. "Discount on notes payable" is a contra-liability account which decreases the balance sheet valuation of the liability.[10] When a company sells (issues) bonds, this debt is a long-term liability on the company's balance sheet, recorded in the account Bonds Payable based on the contract amount. After the bonds are sold, the book value of Bonds Payable is increased or decreased to reflect the actual amount received in payment for the bonds. If the bonds sell for less than face value, the contra account Discount on Bonds Payable is debited for the difference between the amount of cash received and the face value of the bonds.[11] In the United Kingdom, the term net asset value may refer to book value.[12] A mutual fund is an entity which primarily owns "financial assets" or capital assets such as bonds, stocks and commercial paper. The net asset value of a mutual fund is the market value of assets owned by the fund minus the fund's liabilities.[13] This is similar to shareholders' equity, except the asset valuation is market-based rather than based on acquisition cost. In financial news reporting, the reported net asset value of a mutual fund is the net asset value of a single share in the fund. In the mutual fund's accounting records, the financial assets are recorded at acquisition cost. When assets are sold, the fund records a capital gain or capital loss.[citation needed] Financial assets include stock shares and bonds owned by an individual or company.[14] These may be reported on the individual or company balance sheet at cost or at market value. A company or corporation's book value, as an asset held by a separate economic entity, is the company or corporation's shareholders' equity, the acquisition cost of the shares, or the market value of the shares owned by the separate economic entity. A corporation's book value is used in fundamental financial analysis to help determine whether the market value of corporate shares is above or below the book value of corporate shares. Neither market value nor book value is an unbiased estimate of a corporation's value. The corporation's bookkeeping or accounting records do not generally reflect the market value of assets and liabilities, and the market or trade value of the corporation's stock is subject to variations. A more obscure variation of book value, tangible common equity, has recently come into use by the U.S. Federal Government in the valuation of troubled banks.[15][16] Tangible common equity is calculated as total book value minus intangible assets, goodwill, and preferred equity, and can thus be considered the most conservative valuation of a company and the best approximation of its value should it be forced to liquidate.[17] Since tangible common equity subtracts preferred equity from the tangible book value, it does a better job estimating what the value of the company is to holders of specifically common stock compared to standard calculations of book value. To clearly distinguish the market price of shares from the core ownership equity or shareholders' equity, the term 'book value' is often used since it focuses on the values that have been added and subtracted in the accounting books of a business (assets - liabilities). The term is also used to distinguish between the market price of any asset and its accounting value which depends more on historical cost and depreciation. It may be used interchangeably with carrying value. While it can be used to refer to the business' total equity, it is most often used: * as a 'per share value': The balance sheet Equity value is divided by the number of shares outstanding at the date of the balance sheet (not the average o/s in the period). * as a 'diluted per share value': The Equity is bumped up by the exercise price of the options, warrants or preferred shares. Then it is divided by the number of shares that has been increased by those added. # Book value is used in the financial ratio price/book. It is a valuation metric that sets the floor for stock prices under a worst-case scenario. When a business is liquidated, the book value is what may be left over for the owners after all the debts are paid. Paying only a price/book = 1 means the investor will get all his investment back, assuming assets can be resold at their book value. Shares of capital intensive industries trade at lower price/book ratios because they generate lower earnings per dollar of assets. Business depending on human capital will generate higher earnings per dollar of assets, so will trade at higher price/book ratios. # Book value per share can be used to generate a measure of comprehensive earnings, when the opening and closing values are reconciled. BookValuePerShare, beginning of year - Dividends + ShareIssuePremium + Comprehensive EPS = BookValuePerShare, end of year.[18] # The sale of shares/units by the business increases the total book value. Book/sh will increase if the additional shares are issued at a price higher than the pre-existing book/sh. # The purchase of its own shares by the business will decrease total book value. Book/sh will decrease if more is paid for them than was received when originally issued (pre-existing book/sh). # Dividends paid out will decrease book value and book/sh. # Comprehensive earnings/losses will increase/decrease book value and book/sh. Comprehensive earnings, in this case, includes net income from the Income Statement, foreign exchange translation changes to Balance Sheet items, accounting changes applied retroactively, and the opportunity cost of options exercised. The issue of more shares does not necessarily decrease the value of the current owner. While it is correct that when the number of shares is doubled the EPS will be cut in half, it is too simple to be the full story. It all depends on how much was paid for the new shares and what return the new capital earns once invested. See the discussion at stock dilution. Book value is often used interchangeably with "net book value" or "carrying value," which is the original acquisition cost less accumulated depreciation, depletion or amortization.

Related questions

What is the Investment term ' book value'?

shareholders' equity divided by shares of stock outstanding


Is shareholders funds the same as number of shares?

Shareholders funds (also known as Equity) represent the book value of the company. For example, if a company has assets of $10MM and liabilities of $6MM, the book value of the company is $10MM - $6MM = $4MM. Book value per share is computed by dividing the book value of the company by the number of outstanding shares. For example, if the number of outstanding shares is 400,000, the book value per share is $10.


How do you measure shareholder value in banks?

If you are talking about a shareholders worth in the company, it can be measured using the give formula: Book value per share= Shareholder's funds / Number of shares Shareholders funds will include the retained earnings, general reserve, capital contribution of shareholders and exclude deferred expenditure of the business.


Is the book value the same as stockholders' equity?

Book Value and Shareholder Equity are not quite the same thing. To find a company's book value, you need to take the shareholders' equity and exclude all intangible items. This leaves you with the theoretical value of all of the company's tangible assets (those which can be touched, seen, and felt). For this reason, book value is sometimes also called "Net Tangible Assets". http://beginnersinvest.about.com/cs/investinglessons/l/blles3bkvalue.htm


Who are the shareholders of the amazon rainforest?

Its better if you look it up on a book all about the amazon rain forest in a recent book because there isnt anything that i looked up about the shareholders of the rain forest


What was the book that Williams the Conquer men write?

You are probably thinking of the Domesday Book, the most thorough record ever made of the ownership and value of all the land in England for taxation purposes.


What is Price to Book Value Ratio?

The PBV is a financial ratio that is used to compare a company's book value to its current market price. Book value denotes the portion of the company held by shareholders.Formula:PBV = Market Capitalization / Total Book Value as per the Balance SheetOrPBV = Market Value per Share / Book Value per ShareBook Value per Share = Total Book Value / Total No. of outstanding sharesA point to note here is that, PBV ratios do not directly provide us any information on the company's ability to generate profits for itself or its shareholders. It gives us some idea of whether an investor is paying too much for what would be left if the company were to go bankrupt immediately.


What is the difference between Book value and Market value?

Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other hand, market value is the current price at which you can sell an asset. For example, if you bought a house 10 years ago for $300,000, its book value for your entire period of ownership will remain $300,000. If you can sell the house today for $500,000, this would be the market value. Book values are useful to help track profits and losses. If you have owned an investment for a long period of time, the difference between book and market values indicates the profit (or loss) incurred.


How do you find the book value of a company?

Book value of company is the book value of equity of company which can be found from balance sheet of business or book value of business is the book value of assets of business.


Which form of energy is represented by a book lying on a desk which form of energy is represented by book falling off a desk?

Lying on a desk: Potential energy Falling off a desk: Kinetic Energy


In the movie The Jungle Book The Barbershop Quartet of Vultures represented who?

THE BEATLES


What are all of the types of getting struck out in baseball?

Striking out by Swinging, represented in the book by a normal "K". Then striking out looking, meaning you don't swing and the Umpire calls it a strike. This is represented by a backwards "K" in the book.