The founder of Alchemy Products Incorporated discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $2,400,000 in setting up a production plant. He believes that he could sell his patent for $75 million. What is the book value of the firm? Note: Enter your answer in dollars not in millions. What is the market value of the firm? Note: Enter your answer in dollars not in millions. If there are 2 million shares of stock in the new corporation, what is the book value per share? Note: Round your answer to 2 decimal places. If there are 2 million shares of stock in the new corporation, what is the price per share? Note: Round your answer to 2 decimal places.

The founder of Alchemy Products Incorporated discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $2,400,000 in setting up a production plant. He believes that he could sell his patent for $75 million. What is the book value of the firm? Note: Enter your answer in dollars not in millions. What is the market value of the firm? Note: Enter your answer in dollars not in millions. If there are 2 million shares of stock in the new corporation, what is the book value per share? Note: Round your answer to 2 decimal places. If there are 2 million shares of stock in the new corporation, what is the price per share? Note: Round your answer to 2 decimal places.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 1kM

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