The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented...

60.1K

Verified Solution

Question

Finance

The founder of Alchemy Products Inc. discovered a way to turngold into lead and patented this new technology. He then formed acorporation and invested $1,500,000 in setting up a productionplant. He believes that he could sell his patent for $72million.
a.What is the book value of the firm? (Enter your answer indollars not in millions.)
b. What is the market value of the firm?(Enter your answer in dollars not inmillions.)
c. Ifthere are two million shares of stock in the new corporation, whatwould be the book value per share? (Round your answer to 2decimal places.)
d. Ifthere are two million shares of stock in the new corporation, whatwould be the price per share? (Round your answer to 2decimal places.)

Answer & Explanation Solved by verified expert

3.6 Ratings (378 Votes)

Solution a The Book value of the Firm is equal to the Investment made in setting up a production plant As per the information given in the question we have Investment made in setting up a production plant 1500000 Thus the Book value of the firm 1500000 b The market See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member