(Stockholders’ equity) / (Common stock shares outstanding) The theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Shares of a corporation to determine the book value per share of its capital Owners’ equity in its balance sheet is divided by the number of stock That the amount recorded in the accounts or on the books of a business The balance sheet value of owners’ equity per share. Refer to the balance sheet value of an asset (or less often of a liability) or Net worth of the firm’s assets or liabilities according In reference to the value of a company, it is the net worthĪn asset’s original cost, less any depreciation that has been subsequently incurred. The value of an asset as carried on the balance sheet of aĬompany. AĬompany's book value might be more or less than its market value.Īn asset’s cost basis minus accumulated depreciation. With respect to convertible bonds, the value the security would have if it were not convertibleĪ company's book value is its total assets minus intangible assets and liabilities, such as debt. Value is computed as final sales price minus Simulated net realizable value at the split-off point approximated This analysis is often used for highly leveragedĪpproximated net realizable value at split-off allocationĪ method of allocating joint cost to joint products using a Other investment tax credits are calculated separately. In other words, the various tax shields provided by the deductibility of interest and the benefits of
#Principal definition financial plus#
(present value of un-levered cash flows), plus the present value of any financing decisions (levered cashįlows). The net present value analysis of an asset if financed solely by equity The sum of all the interest options in your policy, including interest.Īn amount of money invested plus the interest earned on that money. Present value of a set of independent projects is just the sum of the net present values of the individual projects. Stated differently, the principle that the net Values of the individual assets that make up the group of assets. Prevails when the value of a whole group of assets exactly equals the sum of the Main Page: accounting, credit, investment, finance, inventory, money, business, stock trading, SEARCH Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. Value additivity principal - Financial Definition