Question
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
| 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 $2,000,000 in setting up a production plant. He can sell his patent for $50 million. |
| a. | What are the book value and market value of the firm?(Enter your answers in dollars not in millions.) |
| Book value | $ |
| Market value | $ |
| 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?(Round your answers to 2 decimal places.) |
| Price per share | $ |
| Book value per share | $ |
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Accounting For Decision Making And Control
Authors: Jerold Zimmerman
10th Edition
1259969495, 978-1259969492
