Because the book value of its equity is 5 million.

And book equity per share, or the book value per share of 6.00.

And the denominator here is the equity, the book value of our equity, so that's 5 million.

In our case, the book value of the equity was 5 million.

There's two notions, there's your book value of equity, and that's the value of the equity that comes out of your balance sheet.

Then the number that pops out on the equity side, that is a book value of your equity.

Equity is what's left over. So let's say this is all book value.

So that's why the book value of the equity is now 2 billion.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

Notice, the book value of my equity, well it might have changed a little bit.

And now the book value of our equity is now going to be 2 billion.

The market value equity of 1.5 billion.

In the last several videos we talked about the difference between the book value and the market value of a company's equity.

So the asset value is all in equity.

It's the market's value of the owner's equity

And that's why they call it book equity.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

You have 189,000 as the value of this equity.

So each share should be worth, let's see, 3 billion divided by 500 million, it should be 6 of book equity of book equity equity per share.

This is the book value.

And so if you just subtract the 23 from the 26 billion, you get a book value of its equity.

And just to think about it, why did our book value of equity go from 3 billion to 2 billion?

Remember, there's a difference between book value and market value.

The book is of great value.

This book has a certain value.

And then, that gets you to the market value the equity.

Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books.

They just look purely at the equity value or the market capitalization.

This is the market's guess of the value of this company's equity.

But when the market value, or the market cap, is below the book equity, that's the market just saying, hey we're calling your bluff.

We're willing to say that the market value of your equity is 210,000.

I think that's what I wanted a write here, market value of equity.

The value of this book has been halved.

This is the book value for a share.

So let's actually recalculate our new book value.

By applying the same price to earnings, we're saying that the market value of this equity is 210,000, while the market value of this equity is what was it? 189,000.

So, each share price, or the book value of each share price, essentially should be this 3 billion of equity based on the balance sheet.

So we lost 1 billion of our book value.

What is the new book value of the shares?

So equity.

Equity tranche.

That's equity.

CDOs that they have on their balance sheets is the larger than their equity value.

If it had 10,000 shares, and actually both of the shoe companies had 10,000 shares, then the market is essentially valuing the equity of Ben's shoe company at 215,000, even though the book value of the equity was 135,000.

This book is of great value to students of science.