Equity Growth: This was one of the top things I discussed in the second part of this book. As I mentioned earlier, be careful that you don’t review the equity growth from the balance sheet. Since the number of shares outstanding in a business change almost every quarter, simply looking at the equity on the balance sheet will not be a true indicator of the growth. The best way to review the growth is by analyzing the book value/share every year. You can find this analysis on Microsoft money by following the same path as you did for the price/book ratio. Here are the directions again: From the
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