Class Notes (921,234)
CA (542,480)
UTSC (32,882)
MGA (249)
MGAB01H3 (77)
Liang Chen (34)
Lecture

Statement Presentation of Shareholders

1 Page
129 Views

Department
Financial Accounting
Course Code
MGAB01H3
Professor
Liang Chen

This preview shows half of the first page. Sign up to view the full page of the document.
6WDWHPHQW3UHVHQWDWLRQRI6KDUHKROGHUV¶(TXLW\
Share capital Æ consists of preferred and common shares.
Additional contributed capital Æ the amounts paid over stated (or par) value. This category
will result only if stated (or par) values exist.
Using the Information in the Financial Statements
¾ Return on EquityPHDVXUHVDILUP¶VSURILWDELOLW\DQGHIILFLHQF\1HWLQFRPHQHW
loVVDYHUDJHVKDUHKROGHUV¶HTXLW\ UHWXUQRQHTXLW\
¾ Book Value Per Share: represents the equity a common shareholder has in the net
DVVHWVRIWKHFRUSRUDWLRQ7RWDOVKDUHKROGHUV¶HTXLW\QXPEHURIFRPPRQVKDUHV 
book value per share. When a company has both preferred and common shares, the
calculation of book value for the common shareholders is more complex. Since
preferred shareholders have priority, their equity must be deducted first. The
calculation of book value per common share involves the following steps: calculate
WKHSUHIHUUHGVKDUHKROGHUV¶HTXLW\GHWHUPLQHWKHFRPPRQVKDUHKROGHUV¶HTXLW\DQG
determine book value per common share.
¾ Book Value versus Market Value: book value per share seldom, if ever, equals
market value. Book value is based on recorded historical costs. Market value reflects
WKHVXEMHFWLYHMXGJHPHQWRIVKDUHKROGHUVDQGSRWHQWLDOLQYHVWRUVDERXWDFRPSDQ\¶V
potential for future earnings and dividends.
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
$9,902039!708039,9L4341$K,70K4O0786:L9 Share capital consists of preferred and common shares. Additional contributed capital the amounts paid over stated (or par) value. This category will result only if stated (or par) values exist. Using the Information in the Financial Statements Return on Equity20,8:708,1L7285741L9,-LOL9,3011L.L03. 09L3.420 309 lo88 ,;07,J08K,70K4O07806:L9 709:734306:L9 Book Value Per Share: represents the equity a common shareholder has in the net ,88098419K0.47547,9L43 %49,O8K,70K4O07806:L9 3:2-0741.422438K,708 book value per share. When a company has both preferred and common shares, the calculation of book value for
More Less
Unlock Document


Only half of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit