1. What is a Par Value per Share Calculator?

Definition: This calculator determines the nominal or face value of each share in a company by dividing total equity by the number of outstanding shares.

Purpose: It helps real estate investors, business owners, and financial professionals understand the baseline value of shares in a company.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( PV \) — Par value per share (USD)
• \( E \) — Total equity (USD)
• \( N \) — Number of shares (dimensionless)

Explanation: The total equity of the company is divided equally among all outstanding shares to determine each share's nominal value.

3. Importance of Par Value Calculation

Details: Par value is important for legal and accounting purposes, setting the minimum price for share issuance, and determining legal capital in some jurisdictions.

4. Using the Calculator

Tips: Enter the total company equity in USD and the total number of shares issued. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is par value the same as market value?
A: No, par value is a nominal legal value, while market value is what investors are willing to pay for the shares.

Q2: What's a typical par value for real estate companies?
A: Many real estate companies set a low par value (e.g., $0.01) to minimize legal capital requirements.

Q3: Can par value be zero?
A: In some jurisdictions, yes. These are called "no-par value" shares.

Q4: How does this differ for REITs?
A: REITs follow the same calculation but must meet additional requirements for share values and distributions.

Q5: Why is par value important in real estate?
A: It affects legal capital requirements, share issuance pricing, and can impact property acquisition strategies.