Book Value

Book Value

 Book value is nothing but the Actual worth of the company . This is how its get calculated : Book value of a company = Total assetsTotal liabilities. For example, if Company ABC has total assets of Rs. 10 lakh and total liabilities of Rs. 2 lakh, the book value of the company is Rs. 8 lakh .Theoretically, book value represents the total amount a company is worth if all its assets are sold and all liabilities are paid back .

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