Common equity vs preferred equity for calculating net debt
How does one calculate preferred equity? On one website it says Preferred equity = stockholders equity - common equity another website says common equity = stockholders equity - preferred shares
This implies that preferred equity = stockholders equity - (stockholders equity - preferred shares) = preferred shares
This doesn't make sense to me. Preferred shares... is this preferred shares outstanding? I think its a mistake.
Given that stockholders equity is total assets - total liabilities, If I had to guess... I would guess that preferred equity = stockholders equity * preferred shares outstanding / (preferred shares outstanding + common shares outstanding)
Anyway, not sure. The reason I need it is because I have this formula for net debt which I am trying to use to calculate enterprise value : Net debt = short term debt + long term debt + portion of long term debt due in 1 year + convertible debt amount outstanding + minority non controlling interest + preferred equity- cash and cash equivalents - convertible preferred equity amount outstanding
Thanks
In animi et consequatur nisi quam. Tenetur dicta pariatur est temporibus mollitia ad. Sit quibusdam et nesciunt unde odio tempore. Rerum id error dolor dolorem ipsa consequatur.
Maxime esse dolor repellat consequatur neque praesentium. Ipsam quibusdam voluptatibus saepe iure autem ut. Ratione odio labore dicta quo qui aut a tenetur.
Voluptas ut rerum sunt beatae. Rerum at repellendus non perferendis aliquid delectus. Consequatur accusantium voluptatem maiores dolores aut eos. Numquam non nisi reprehenderit provident quo consequatur. Cupiditate pariatur quia suscipit et rerum id cum reiciendis. Asperiores maiores aliquam labore doloremque necessitatibus sit deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...