How is book value per share interpreted for an investor who owns one share of a company's stock? Is book value equal to the amount this stockholder would receive if the company were sold or liquidated? Why or why not?
Book value per share is the equity of the owner of one share of stock in the net assets of a company. Book value generally does not equal the amount a stockholder receives if the company is sold or liquidated because, in most cases, assets are recorded at historical cost,
not at their current market value
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