Book Value

Last modified by

on

Jul 24, 2020, 6:28:07 PM

Created by

on

Jun 17, 2014, 10:51:18 PM

B = A - \frac{A - R}{L}

$B = {:{:{: "A" :}:} - {:({: "A" :} - {: "R" :})/{: "L" :}:}:}$

VAR1

A

R

L

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e4e04366-f671-11e3-b7aa-bc764e2038f2

Book Value is defined as its acquisition cost minus its total amount of accumulated depreciation. The Book Value has a few main uses:

It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.
By being compared to the company's market value, the book value can indicate whether a stock is under- or overpriced.
In personal finance, the book value of an investment is the price paid for a security or debt investment. When a stock is sold, the selling price less the book value is the capital gain (or loss) from the investment.

Input Variables:

A- Acquisition Cost

R- Residual value

L- Life

Output for Formula:

Returns the Book Value

This equation, Book Value, references 2 pages

• VAR1 by DavidC

• Straight-Line Method of Depreciation by Megan

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