In this video on Share Capital, here we discuss share capital formulas along with practical examples including calculation of share capital of Starbucks.
𝐒𝐡𝐚𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧
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The share capital is the amount of cash and property that a company gets through its funding of equity.
𝐒𝐡𝐚𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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Formula #1
Share Capital = Issue Price Per Share * Number of Outstanding Shares
Formula #2
Share Capital (with Par Value)
Share Capital = Numbers of Shares * Par Value of Stock +Paid in Capital in excess of par value
Formula #3
Share Capital (No Par Value)
Share Capital = Common Stock Proceeds
𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥
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Let's say that at the issue price of $10 per share, Yolks Ltd. issued 200,000 shares.
Now, $1 per share is the par value.
Calculate the amount of share capital and its par value and the additional portions of paid-in capital.
The total capital using the below formula –
Share Capital = Issue Price per Share * Number of Outstanding Shares
= $10 * 200,000 = $2 million.
To know more about the 𝐒𝐡𝐚𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥, you can go to this 𝐥𝐢𝐧𝐤 :- [ Ссылка ]
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