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"M351 Notes-Day 15 Equity 3 02-19

"M351 Notes-Day 15 Equity 3 02-19 - Net income...

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M351 Notes, Class 15: Stockholders’ Equity, pages 765-774 A. The balance sheet version of the statement of stockholders’ equity appears on page 765 in Illustration 15-13. Another version of a statement of stockholders’ equity appears on page 766 in Illustration 15-14. I would like for you to be able to create the version on page 765 and use the version on page 766 to answer questions about equity. B. Equity ratios: 1. Return on equity: Net income - Preferred dividneds Average common equity 2. Payout: Cash dividends
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Unformatted text preview: 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 771 and 772. This section covers perferred dividends, arrears dividends on cumulative preferrred and participating preferred stock. D. On pages 772 and 773 calculations of book value and book value per share for situations involving preferred in arrears, cumulative and participating preferred. 1...
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