How is the stockholders equity section of the balance sheet


Question: 1. How is the stockholders' equity section of the balance sheet different from the statement of stockholders' equity?

2. Why doesn't total stockholders' equity equal the market value of the firm?

3. Which tends to be larger, the return on equity or the return on the market value of equity? Explain why.

4. What does "PE" stand for in the PE ratio, and how do investors use this ratio?

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Finance Basics: How is the stockholders equity section of the balance sheet
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