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Total assets of a firm are $1,000,000 and the total liabilities are $400,000. 500,000 shares of common stock have been issued and 250,000 shares are outstanding. The market price of the stock is $15 and net income for the past year was $150,000.
a. Calculate the book value of the firm.
b. Calculate the book value per share.
c. Calculate the P/E ratio.
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