You are on page 1of 18

BOOK VALUE PER

SHARE
PRESENTED BY:
GROUP 3 AND GROUP 4

FORMULA: . If the market value per share is lower than the book value per share. Book Value per share  It compares the amount of stockholders' equity to the number of shares outstanding. then the stock price may be undervalued.

2015: Share Capital P 5.000 = 190 Per Share .500. ILLUSTATION: The Share holder's equity in the statement of financial position on Dec 31.000.000.000 Retained Earnings 2. 50.000 (P 100 Par.000 Total Shareholder's Equity 9.000 Shares) Share Premium 1.000 Revaluation Surplus 1.500.000.

PREFERENCE SHARE (Preferred Share)  It’s shares of a company’s stock with dividends that are paid out to shareholders before common  stock dividends are issued.  .

. Liquidation Value of Preference Share  Liquidation Value is the amount which preference shareholders normally receive upon the liquidation of the corporation.  Liquidation Value may be more than PAR VALUE.

Preference as to assets  The preference shareholders are entitled to payment not only for the liquidation value but also or dividends in arears. (Dividends in arrears are fully Payable) .

Preference as to dividends  Preference as to dividends  Does not mean that the preference shareholder have absolute right to dividends. Preference Share as to DIVIDENDS: -Non-cumulative -Cumulative -Non-participating -Participating .

Preference as to dividends .

.Non-cumulative Preference Share  This is the right to receive dividends is forfeited in an one year in which dividends are NOT DECLARED but only entitled to CURRENT YEAR dividends.

Cumulative Preference Share  Undeclared dividends accumulative each until paid.  It’s entitled to all dividends areas. .

Non-participating Preference Share  This entitled to receive ONLY the dividends equal to fixed rated. .

. Participating Preference Share  This is entitled to receive dividends equal in excess of the basic or fixed right.

PREFERENCE SHARE CASES 1 C  Preference share is Non-Cumulative and Non-Participating CASES 2 A  Preference share is Cumulative and Non-Participating  CASES 3 S  Preference share is Cumulative and Participating CASES 4 E Preference share is Cumulative and Participating up to 16 %  CASES 5 Preference share is Cumulative. S Non-Participating w/ liquidation value of 106 Per Share .

CASE ONE: .

CASE TWO: .

CASE THREE: .

CASE FOUR: .

CASE FIVE: .