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Book value
Book value is the shareholders' equity of a business (assets - liabilities) as measured by the accounting 'books'. The term is also used to distinguish between the accounting value (usually historical cost) and the market price of any asset, such as capital equipment, and may be referred to as carrying value. While it can be used to refer to the business' total equity, it is most often used:
- Per share value: The balance sheet Equity value is divided by the number of shares outstanding at the date of the balance sheet (not the average o/s in the period).
Diluted per share value: The Equity is bumped up by the exercise price of the options, warrants or preferred shares. Then it is divided by the number of shares that has been increased by those added
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