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Finance / July 19, 2018 / Andi Barnett

Net equity valueNet equity value is the fair market value of a business’s assets minus its liabilities. This measured value is used to determine a business’s net worth - or the funds that would be left over and available to shareholders if all liabilities and debts were paid off.

You would see that in calculating earnings per share also we take weighted average of outstanding shares. But the basic difference between the dividends per share and earnings per share is what we put in the numerator.

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