To determine a stock's ________, a company subtracts its liabilities from its assets, and the resulting figure, the shareholders' equity, is then divided by the number of shares that have been issued or sold of the stock.
A) market value
B) par value
C) book value
D) split value
E) dividend

Question

Quizplus · Accepted Answer

The correct term is "book value." This value is calculated by subtracting a company's total liabilities from its total assets to get the shareholders' equity, which is then divided by the number of outstanding shares.

To Determine a Stock's ________, a Company Subtracts Its Liabilities