Book Value of a Company: Explained | CFA Level 1 Exam Prep

Book Value of a Company

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Book value of a company is equal to all of the following except

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A. B. C. D.

C

The book value of a company is its value based on the balance sheet. The balance sheet is historical and after day 1 of operations the book value of a company is almost never equal to the market value of the company.