Analysis of past monthly movements in IBM's stock price produces the following estimates: = 2.5% and = 1.6. If the market index subsequently rises by 12% in one month and IBM's stock price increases by 20%, what is the abnormal change in IBM's stock price?

(a).	Assume a book value per share of $10 and a price per share of $24, what is the market capitalization of a firm with 2,000,000 outstanding shares?

(b).	Assume a book value per share of $5 and a price per share of $12. What is the market value added of a firm with 2,000,000 outstanding shares?