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The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then form

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Answer #1

(a) Book Value & Market Value of the Firm

Book Value = $600,000

Market Value = $600,000 + $72,000,000 = $72,600,000

(b) Book Value per Share & Market Value per Share

No.of Share = 3,000,000   

Book value per share = $ 600,000 / 3,000,000 = $ 0.20 per share

Market price per share = $72,600,000 / 3,000,000 = $ 24.20 Per share

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