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Computation of Book Value

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Digby's balance sheet has $80,975,000 in equity. Further, the company is expecting net income of 4,000,000 next year, and also expecting to pay $5,000,000 in dividends. If there is no new stock issued what will be Digby's book value?
Select: 1
$79,975,000
$44,189,000
$34,189,000
$89,975,000

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Computation of book value

$2.19