A company's book value is determined by dividing its earnings by the number of shares of common stock outstanding.

Name: A company's book value is determined by dividing its earnings by the number of shares of common stock outstanding.
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A company's book value is determined by dividing its total assets minus its liabilities by the number of shares of common stock outstanding. Earnings per share are calculated by dividing net income by the number of shares outstanding.

A Company's Book Value Is Determined by Dividing Its Earnings