This chapter introduces how those frequently used measures in Asset pricing are calculated.

Book Equity

Fama and French(1993) use following expression to calculate Book Equity.

$BE = SEQ+TXDITC-PS$

Where $SEQ$ is the total parent stockholder's Equity. $TXDITC$ is the deferred Taxes and Investment Tax Credit. $PS$ is the preferred stocks which use the redemption value ($PSTKRV$),or the liquidation value($PSTKL$) or the par value($PSTK$) (in that order).

if either $TXDITC$ or $PS$ is missing, they are set to zero. In the case of $BE$ is less than zero, it is set to missing.

Market Equity

https://guan.dk/market-value-equity

WeightPort

When calcuating the value weighted return, the weightport is needed.