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Stockholders’ Equity

Stockholders’ Equity. Chapter 15. Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield. Prepared by Coby Harmon, University of California, Santa Barbara. Presentation and Analysis of Stockholders’ Equity. Illustration 15-13.

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Stockholders’ Equity

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  1. Stockholders’ Equity Chapter 15 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield Prepared by Coby Harmon, University of California, Santa Barbara

  2. Presentation and Analysis of Stockholders’ Equity Illustration 15-13

  3. Presentation and Analysis of Stockholders’ Equity Analysis Rate of Return on Common Stock Equity Net income – Preferred dividends = Average common stockholders’ equity Ratio shows how many dollars of net income the company earned for each dollar invested by the owners. See page 752

  4. Presentation and Analysis of Stockholders’ Equity Analysis Cash dividends Payout Ratio = Net income – Preferred dividends It is important to some investors that the payout be sufficiently high to provide a good yield on the stock. See page 752

  5. Presentation and Analysis of Stockholders’ Equity Analysis Common stockholders’ equity Book Value Per Share = Outstanding shares The amount each share would receive if the company were liquidated on the basis of amounts reported on the balance sheet. See page 753

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