I'd hereby would like to ask if any of you know whether I should use common equity or the total equity value, when computing monthly BM ratio's as done by Lewellen is his 2015 paper on a cross section of expected stock returns.
Full reference; Lewellen, J. (2015). The cross-section of expected stock returns. Critical Finance Review, 4(1), 1–44. https://doi.org/10.1561/104.00000024
I believe he is only looking at common stocks, yet at the same time to calculate the market value of equity I can only find the shares outstanding of all public shares on a monthly basis in CRSP.
Thank you in advance,
Kind regards, Julien Maas