Solution-What would be the book value per share

What would be the book value per share

Assignment Help Managerial Accounting

Reference no: EM132984144

The founder of Alchemy Products Inc. 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 $72 million.

Problem a. What is the book value of the firm? (Enter your answer in dollars not in millions.)

Problem b. What is the market value of the firm? (Enter your answer in dollars not in millions.)

Problem c. If there are two million shares of stock in the new corporation, what would be the book value per share? (Round your answer to 2 decimal places.)

Problem d. If there are two million shares of stock in the new corporation, what would be the price per share? (Round your answer to 2 decimal places.)

Reference no: EM132984144

Questions Cloud

When features and characteristics of a product or service : Which the costs that result when features and characteristics of a product or service are not in conformance with the specifications are known as

What are respective residual incomes for the east divisions : The company's desired rate of return is 10%. Profit is defined as operating profit. What are the respective residual incomes for the East and West Divisions?

Discuss the issues that will arise from divisional actions : Discuss the issues that will arise from these divisional actions, in particular, the issues related to the dysfunctional behavior of the managers should be

What profit would security brokers incur for beedles inc : Beedles Inc. needed to raise $14 million, What profit would Security Brokers incur if the issue were sold to the public at the $5.5 per share average price?

What would be the book value per share : If there are two million shares of stock in the new corporation, what would be the book value per share? (Round your answer to 2 decimal places.)

What is the total impact of the changes on the profits : Theta's accounts receivable increased by $16,000, What is the total impact of the changes on the difference between profits and cash flow?

What the estimated total manufacturing overhead cost : What the estimated total manufacturing overhead cost for the period is closest to? Assume (1) actual machine hours work during the period Of 54000 hours

Is an example of setting budget goals too tightly : Is this an example of setting budget goals too tightly, too loosely, or conflicting budget goals? RPC Corporation would like to increase total sales.

Prepare the journal entries to record the above : Calculate the cash receipts from customers during the year and Calculate the cash payments to suppliers during the year

User Account

All Pages

What would be the book value per share

Reference no: EM132984144

Reference no: EM132984144

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT