Editing Book value (section)

===Uses of books===
#Book value is used in the [[financial ratio]] [[P/B ratio|price/book]]. It is a valuation metric that sets the floor for stock prices under a worst-case scenario. When a business is liquidated, the book value is what may be left over for the owners after all the debts are paid. Paying only a price/book = 1 means the investor will get all his investment back, assuming assets can be resold at their book value. Shares of capital intensive industries trade at lower price/book ratios because they generate lower earnings per dollar of assets. Business depending on [[human capital]] will generate higher earnings per dollar of assets, so will trade at higher price/book ratios.
#Book value per share can be used to generate a measure of comprehensive earnings, when the opening and closing values are reconciled. BookValuePerShare, beginning of year – Dividends + ShareIssuePremium + Comprehensive EPS = BookValuePerShare, end of year.<ref>http://www.retailinvestor.org/earnings.html {{Webarchive|url=https://web.archive.org/web/20190402214139/http://www.retailinvestor.org/earnings.html |date=2 April 2019 }} Use Book Value To Calculate Comprehensive EPS</ref>