Class15 - Equity3

Class15 - Equity3 - 2 Payout Cash dividends Net income...

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M351 Notes, Class 15: Stockholders’ Equity, pages 749-757 Today’s topics: Presentation of Stockholders’ Equity Ratios A. The balance sheet version of the statement of stockholders’ equity appears on page 750 in Illustration 15-13. Another version of a statement of stockholders’ equity appears on page 751 in Illustration 15-14. I would like for you to be able to create the version on page 751 and use the version on page 752 to answer questions about equity. B. Equity ratios: 1. Return on equity: Net income - Preferred dividneds Average common equity
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Unformatted text preview: 2. Payout: Cash dividends Net income - Preferred dividends 3. Book value per share: Common stockholders ' equity Outstanding shares C. Allocating dividends between classes of stock is explained and illustrated on pages 755 and 756. This section covers perferred dividends, arrears dividends on cumulative preferrred and participating preferred stock. D. On pages 756 and 757 calculations of book value and book value per share for situations involving preferred in arrears, cumulative and participating preferred. 1...
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue.

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