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Do the calculation of book value of equity of the company based on the given information.
Book value of equity calculation. This leaves a residual amount available for distribution to investors. 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. Based on the above formula calculation of book value of equity of rsz ltd can be done as 5 000 000 200 000 3 000 000 700 000.
Book value is the amount that investors would theoretically receive if all company liabilities were subtracted from all company assets.
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