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Reogranization (Book Value Per Share of C/S (Book Value (P/S items (Total…

- - - - Total P/S
      - P/S Dividends in Arrears
      - P/S Liquidation Premium
- - - - Calculations
        
        FV of liability to unsecured creditors
        
        Less: Cash Paid
        
        Less: Common Stock Issued
- - - - Subtract all P/S dividends including undeclared ones
      - Only deduct current year dividend in arrears, prior year amounts only reduce that year's EPS
    - - Treat as if it happened in beginning of year regardless when it was issued during the year
      - Example:
        Jan 1: 20k
        April 1: 2 for 1 split 20K
        July 1: 10k
        Avg C/S for EPS is 45K
        20k + 20k + 5k
        5k = (Period covered or 6/10 x 10k)
    - - All others (Discontinued Operations) can be on F/S or just add in notes
  - - - Stock options increases shares outstanding
      - Their exercise price is less than market value
        
        Results in having stock options remaining unacquired
      - If not, ignore stock options in calculation
    - - Example:
        Assume stock options exercised = 600k (40k shares at $15)
        Stock issued = 40k
        Stock reacquired calc = 600k proceeds / $20 current mkt price
        Stock reacquired = 30k
        Shares issued, not reacquired from stock options = 10k (40-30k)
        325k Avg C/S + 10k from options = 335k