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SIE: Equity Securities
SIE practice questionmediumBook Value

Book value per share is best described as:

  1. ATotal dividends divided by shares outstanding
  2. BMarket price of a share times total shares outstanding
  3. CAnnual earnings divided by shares outstanding
  4. DNet assets divided by shares outstanding✓ Correct answer
Explanation

Why DNet assets divided by shares outstanding

Book value per share is the company's net asset value divided by shares outstanding. It is not based on market value, earnings, or dividends.

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