The most common method used to calculate cost of equity is the capital asset pricing model or CAPM. This involves finding the premium on company stock that's required to make it more attractive ...

Using the metrics together, investors get a full view of a company's financial performance.

The Equity to Asset Ratio (EAR) is a financial metric that measures the proportion of a company’s assets that are financed by its shareholders’ equity. This ratio gives investors and analysts ...

It is a measure of the value that shareholders would theoretically receive if a company were liquidated and all liabilities were paid off. In simple terms, tangible equity is the portion of a ...

It helps equity investors understand how efficiently a firm uses its invested money from shareholders to generate profit. The ROE calculation excludes invested capital from bondholders ...

or equity grants. That stock should be included in the common stock outstanding figure. Not all shares are created equal. The type you choose should depend on your goals. The calculation for ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by ...

Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

You can calculate the debt-to-equity ratio by dividing shareholders' equity by total debt. For example, if a company's total debt is $20 million and its shareholders' equity is $100 million ...

Preferred stock is a unique type of equity that grants shareholders priority over common stockholders in terms of dividend distribution and—in the event a company goes bankrupt—asset distribution.

The most common method used to calculate cost of equity is the capital asset pricing model or CAPM. This involves finding the premium on company stock that's required to make it more attractive ...