Book Value Return Of Equity
This figure represents the minimum value of a company s.
Book value return of equity. Whereas simultaneously return on equity roe and debt to equity ratio der have a significant effect on price to book value pbv and the adjusted r2 test of 45 7 price to book value pbv is influenced by return on equity roe and debt to equity ratio der and the remaining 54 3 price to book value pbv is influenced by other factors not examined in this study. Book value of equity is an important concept because it helps in the interpretation of the financial health of a company or firm as it is the fair value of the residual assets after all the liabilities are paid off. This article has been a guide to what is book.
Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.