Problem $3-9$ Market versus Book Values $($LO$2)$

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 $$1,400,000$ in setting up a production plant. He believes that he could sell his patent for $$50$

million.

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

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

c$.$ If there are $2$ million shares of stock in the new corporation, what is the book value per share? $($Round your answer to $2$ decimal

places.$)$

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