Enscoe Enterprises, Inc. (EEI) has 320,000 shares authorized, 260,000 shares issued, and 50,000 shares of treasury stock. At this point, EEI has $980,000 of assets. $140,000 liabilities, $620,000 of common stock, and $220,000 of retained earnings. Further, assume that the market value of EEI's common stock is $6 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.