Is equity value is the same as stockholders equity? I have been given liabilities and stockholders equity total also and I need to calculate the leverage ratio, but I not sure what numbers should I use and whether I need to calculate the equity value using asset value and etc. or I could just plug in the number.
1 Answer
"Stockholder's equity" is how we label Equity in corporations, so it should be identical to the general concept of "Equity", except if, by a confusing misuse of words, by "Stockholder's equity" the authors meant "Shareholder Capital", which sometimes it is used to mean only a part of Equity (the nominal (par) value of shares issued), the other main parts of Equity being "Paid up capital" (amounts paid "above par"), various "Reserves", Retained Earnings.