The Book Value of a Company's Common Stock Is Determined

question 142

Short Answer

The book value of a company's common stock is determined by
what buyers are willing to invest in a firm.
dividing total assets by the number of outstanding shares.
dividing total shareholders' equity by the number of outstanding shares.
dividing net profit by the number of outstanding shares.
stock brokers' opinions and ratings.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points, calculated as the square root of the variance.

Variance

A measure of the spread or dispersion of a set of data points, indicating how much the data varies from the average of that set.

Outliers

Observations in a dataset that significantly differ from the other data points, often indicating variability or errors.

1.5*IQR

A statistical calculation used to identify outliers. It involves multiplying the interquartile range (IQR) by 1.5 and applying this value above the upper quartile and below the lower quartile.