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The value of equity, or capital, all company shareholders own.[sc:kit03 ]
Explanation of Total Stockholders Equity
Also called Shareholder’s Equity, or Book Value, and listed on the Balance Sheet, this figure represents the stockholder’s ownership amount.
Importance of Total Stockholders Equity
Total Stockholder’s Equity is used in the calculation of the performance ratios Debt to Equity Ratio, Return on Equity, and Long Term Debt To Total Capitalization.