Describe the calculation of earnings and book value per share
EARNINGS AND BOOK VALUE PER SHARE
Publicly held firms that apply U.S. GAAP or IFRS must show earnings per common share data in the body of the income statement. Earnings per common share result from dividing net income minus preferred stock dividends by the weighted-average number of outstanding common shares during the accounting period. Firms reporting multiple categories of income items must disclose earnings per common share for each reported category.
Some firms voluntarily disclose book value per common share in their annual reports. Book value per common share equals total common shareholders' equity divided by the number of shares outstanding on the date of the balance sheet.
Investors often apply multiples to earnings per common share and book value per common share in deciding on a reasonable market price for a firm's shares.
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As organizations grow, they will tend towards bureaucracy. Such a prediction assumes organization design is contingent upon ______.
a. Technology b. Environment c. Size d. Throughputs
________ is the practice of trading goods and services without the use of money.
A. Noncash incentive B. Consignment C. Barter D. Float
What is the function of a cash flow budget?
A. It forecasts sales and allocates expenses for achieving them. B. It forecasts the amount of money needed to pay expenses and make other purchases. C. It plans and controls revenue and expenses to obtain desired profits. D. It plans expenditures for obtaining, expanding, and replacing physical facilities.
Fernando owes Lucia $8,000 . They both realize he is unlikely to be able to repay that much, so Lucia says: "Pay me $5,000 and we'll call it good." Fernando pays the $5,000 . This settlement is called:
a. preexisting duty b. liquidated debt c. unliquidated debt d. rescission e. none of the other choices