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Q1) Founder of ALchemy Products, inc, discovered way to turn lead onto gold and patented this new technology. He then formed corporation and invested $200,000 in setting up production plant. He thinks that he could sell his patent for $50 million.

a. Determine the book value and market value of firm?

b. If there are 2 million shares of stock in new corporation, determine price per share and book value per share?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916915

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