Answer:
a. The book value and market value of the firm is $1,200,000 and $49,200,000 respectively
b. The price per share and the book value per share is $24.60 and $0.60 respectively
Explanation:
a. The computation of the book value and market value of the firm is shown below:
The book value = Invested amount = $1,200,000
The market value = Invested amount + sales value
= $1,200,000 + $48,000,000
= $49,200,000
b. The computation of the price per share and the book value per share is shown below:
Price per share = Market value of firm ÷ Number of shares
= $49,200,000 ÷ $2,000,000
= $24.60
Book value per share = Book value of firm ÷ Number of shares
= 1,200,000 ÷ $2,000,000
= $0.60
