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

The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology
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Market vs Book Value: 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 $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million.
a. What are the book value and market value of the firm?
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?

 

FILE: MS WORD

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