Series 7 - General Securities Representative Exam
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Which of the following best defines a company's book value?
The value of a company according to the stock's market capitalization
A
The amount of money that would be paid to shareholders if the company was liquidated and paid off all of its liabilities
B
The amount of money that would be paid to shareholders if the company was acquired in a leveraged buyout
C
The value of the company according to the forward earnings per share
D
Explanations
Book value of a company=Total assets−Total liabilities