Question: Is noncontrolling interest a part of common equity?
I am trying to find the total common equity of a company that has no preferred stock. so it's common equity would = total shareholder's equity. But I am not sure wether to use the total shareholder's equity amount, or the total equity amount that has noncontrolling interest added onto it.
Answer:
Total equity amount that has noncontrolling interest added onto it. Otherwise, you could have a situation where 1 person owns 50% of the stock, and 1,000,000 other people own 1 share each, and you would only be counting 50% of the common equity.