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Net income Market versus Book Values. The founder of Alchemy Products Inc. discovered a way...

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Finance

Net income
Market versus Book Values. The founder of Alchemy Products Inc. discovered a way to turn
gold into lead and patented this new technology. He then formed a corporation and invested
L $200,000 in setting up a production plant. He believes that he could sell his patent for
$50 million. (LO3-2)
a. What is the book value of the firm?
b. What is the market value of the firm?
c. If there are 2 million shares of stock in the new corporation, what is the book value per share?
d. What is the price per share?
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