Problem 3-36 Book versus Market Value (LO2)

The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022, while the income statement items correspond to revenues or expenses during the year ending in either 2021 or 2022. All values are in thousands of dollars.

	2021	2022
Revenue	$ 4,900	$ 5,000
Cost of goods sold	1,800	1,900
Depreciation	480	500
Inventories	300	330
Administrative expenses	510	560
Interest expense	140	140
Federal and state taxes*	590	610
Accounts payable	280	320
Accounts receivable	350	385
Net fixed assets	4,600	5,340
Long-term debt	2,800	3,150
Notes payable	853	530
Dividends paid	470	470
Cash and marketable securities	850	450

* Taxes are paid in their entirety in the year that the tax obligation is incurred.

Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.

Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2022 is $5,505 and that the value of its long-term debt is only $2,950. In addition, the consensus among investors is that Fincorps past investments in developing the skills of its employees are worth $2,800. This investment, of course, does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 481,000 shares of stock outstanding.)