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Sagot :
Answer: See explanation
Explanation:
a. What are the book value and market value of the firm?
The book value will be the amount of money that Alchemy invested which will be $1,500,000.
Market value = Value of patent + Value of production plant
= $75 million + $1,500,000
= $76.5 million
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
Price per share = Market value / Number of shares
= $76.5 million / 1 million
= $76.5 per share
Book value per share = Book value / Number of shares
= $1.5million/ 1 million
= $1.5 per share
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