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The book value of a company’s equity is the sum of:

The book value of a company’s equity is the sum of:

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Answer #1

The book value of company's equity is the sum of shareholder's contribution , retained earnings & any other accumulated income .

shareholder contribution refers to amoutn brough in by shareholders through application, allotment and different calls.

Retained earnings refers to the portion of previous years profits which has not been paid off as dividends

Book value of equity = shareholder's contribution +  retained earnings + any other accumulated income .

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