Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
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
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.