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A. XYZ company had $50 million in owners equity at the start of 2019. A million shares were outstanding, with a price at 20% premium

A. XYZ company had $50 million in owners equity at the start of 2019. A million shares were outstanding, with a price at 20% premium to book value. What were its market value and book value; market value-per-share and book value-per-share?

B. XYZ retained $5 million of its after-tax profits during 2019. What were its market value and book value; market value-per-share and book value-per-share as of Jan 2 2020 assuming the same relationship existed between market and book value-per-share as the previous year (and no additional shares issued?

C. Given the situation in B], XYZ issues an additional 200,000 shares on Jan 3 2020 at a 2% discount to its Jan 2 price. (It is common for shares to be sold at a modest discount when the company issues a sizable amount of shares.) What are its market value and book value; market value-per-share and book value-per-share?

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