Enscoe Enterprises, Inc. (EEI) has 225,000 shares authorized, 150,000 shares issued, and 30,000 shares of treasury stock. At this point, EEI has $780,000 of assets. $180,000 liabilities, $360,000 of common stock, and $240,000 of retained earnings. Further, assume that the market value of EEI’s common stock is $7 per share.

Required
a. Determine the number of shares of stock that is outstanding.
b. Determine the book value per share.
c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI’s common stock.