A more thorough explanation:

Definition: Book equity refers to the percentage of a company's book value that is allocated to a specific class of stock. It is different from market equity, which is the value of a company's stock based on current market prices.

Example: Let's say a company has a book value of $1 million and has issued two classes of stock: Class A and Class B. If Class A stock is allocated 60% of the book value, then the book equity for Class A would be $600,000.

Explanation: This example illustrates how book equity is calculated based on the percentage of a company's book value allocated to a specific class of stock. In this case, Class A stock is allocated 60% of the book value, so its book equity is $600,000.