The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.

Question

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The book value per share of stock is indeed calculated by subtracting the company's total liabilities from its total assets to get the shareholders' equity, then dividing that figure by the number of outstanding shares of common stock.

The Book Value for a Share of Stock Is Determined