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Friday, August 19, 2011

How to Calculate Shareholder Funds

Shareholder funds (also known as stockholders' equity or shareholders' capital) represent the amount of capital invested by stockholders into the company, including equity share capital, preference share capital, surplus and all reserves.

Stockholders' equity = Total assets - Total liabilities
Or, = Share capital + Reserves
(Note that: Reserves include share premium, retained


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