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 $1,200,000 in setting up a production plant. he believes that he could sell his patent for $48 million. a. what are the book value and market value of the firm? (enter your answers in dollars not in millions.) book value$ 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$

a. The book value and market value of the firm is  $1,200,000 and $49,200,000 respectively

b. The price per share and the book value per share is $24.60 and $0.60 respectively

Explanation:

a. The computation of the book value and market value of the firm is shown below:

The book value = Invested amount = $1,200,000

The market value = Invested amount + sales value

                             = $1,200,000 + $48,000,000

                             = $49,200,000

b. The computation of the price per share and the book value per share is shown below:

Price per share = Market value of firm ÷ Number of shares

                          = $49,200,000 ÷ $2,000,000

                          = $24.60

Book value per share = Book value of firm ÷ Number of shares

                          = 1,200,000 ÷ $2,000,000

                          = $0.60

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

a. money supply  

have a good day