Book Value Per Common Share BVPS: Definition and Calculation
If we assume the company has preferred equity of $3mm and a weighted average share count of 4mm, the BVPS is $3.00 (calculated as $15mm less $3mm, divided by 4mm shares). Another way to increase BVPS is for a company to repurchase common stock from shareholders. Assume XYZ repurchases 200,000 shares of stock, and 800,000 …
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