Market versus Book Values. The founder of Alchemy Products, Inc., discovered a way to turn lead into

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Market versus Book Values. The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then formed a corporation and invested

$200,000 in setting up a production plant. He believes that he could sell his patent for

$50 million.

a. What are the book value and market value of the firm?

b. If there are 2 million shares of stock in the new corporation, what would be the price per share and the book value per share?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 05, 2024 02:01 AM

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Market versus Book Values. The founder of Alchemy Products, Inc., discovered a way to turn lead into

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Study Guide To Accompany Fundamentals Of Corporate Finance

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