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IRISSAK [1]
3 years ago
12

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 $200,000 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.) 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. What is the price per share? (Round your answer to 2 decimal places.)
Business
1 answer:
Ira Lisetskai [31]3 years ago
4 0

Answer:

(A) $200,000

(B) $50,200,000

(C) $0.10 per share

(D) $25.10 per share

Explanation:

(A) The book value of the firm is $200,000

(B) The market value of the firm can be calculated as follows

= $200,000 + 50,000,000

= $50,200,000

(C) The book value per share can be calculated as follows

= 200,000/2,000,000

= $0.10 per share

(D) The price per share can be calculated as follows

= 50,200,000/2,000,000

= $25.10 per share

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Veronika [31]

Answer:

c

Explanation:

the health care because it is very expensive benefit

6 0
3 years ago
Read 2 more answers
In the ethical decision-making framework, the main difference between identifying the stakeholders and considering how those sta
taurus [48]

The difference between the identification of the stakeholders and the impact of ethical decision-making on the stakeholders is that <u>A. as the firm identifies the </u><u>stakeholders</u>, it must anticipate which ones will be most affected by the decision being made.

<h3>What is ethical decision-making?</h3>

Ethical decision-making involves the evaluation and choice of the best alternatives that are consistent with the organization's ethical principles.

In making ethical decisions, the organization should eliminate unethical options so as to select the best ethical alternatives.

<h3>Answer Options:</h3>

A. as the firm identifies the stakeholders, it must anticipate which ones will be most affected by the decision being made.

B. after a firm identifies the stakeholders affected, it must then consider the future implications of the decision being made.

C. a firm only needs to identify the stakeholders affected if feedback from the monitoring and assessing step indicates there is a need to do so.

D. a firm only needs to consider the impact of the decision if the stakeholders identified indicate there is a need to do so.

E. before a firm identifies the stakeholders affected, it must first consider the future implications of the decision being made.

Hence, <u>Option A.</u> is correct.

Learn more about ethical decision-making at brainly.com/question/5244016

7 0
2 years ago
During 2017, Ziplock Manufacturing expected Job No. 89 to cost $700,000 in overhead, $1,000,000 in direct materials, and $500,00
irga5000 [103]

Answer:

a. not able to be determined from the provided information.

Explanation:

For determining the over applied or under applied, first, we have to compute the predetermined rate based on the direct material cost which is  

= $700,000 ÷ $1,000,000

= $0.70

Now the applied overhead is  

= $0.70 × $1,200,000

= $840,000

And, the actual overhead amount is not given by which we can find out the underapplied or overapplied overhead amount

So, in this case, the correct option is a.

7 0
3 years ago
The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectati
ra1l [238]

Answer:

forward rates are determined by investors' expectations of future interest rates.

Explanation:

The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectations of future interest rates. It suggests that the predicted holding period rate of return of a bond of "x" number of time is equal to the short-term interest rate irrespective of its maturity.

The Expectations theory gives us the opportunity to predict the future outcome of short-term interest rates based on current long-term interest rates.

7 0
3 years ago
Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment
user100 [1]

Answer:

The cost recorded for the equipment=$66,500

Explanation:

When dealing with the total cost of an equipment we take the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;

T=P+A

where;

T=total cost

P=purchase cost

A=additional costs(transportation cost+sales tax+installation cost)

In our case;

T=unknown

P=$60,000

A=(1,000+3,000+2,500)=$6,500

replacing;

T=60,000+6,500=66,500

The total cost=$66,500

The cost recorded for the equipment=$66,500

4 0
3 years ago
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