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SIE: Equity Securities
SIE practice questioneasyBook Value

The book value of a company is best described as:

  1. ADividend yield
  2. BMarket price per share
  3. CAnnual earnings per share
  4. DAssets minus liabilities and preferred stock✓ Correct answer
Explanation

Why DAssets minus liabilities and preferred stock

Book value is calculated as assets minus liabilities and preferred stock. Market price, earnings per share, and dividend yield relate to other metrics.

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