Over the years, Janjigian Corporation's stockholders have provided $18,000 of capital, part when they purchased new issues of stock and part when they allowed management to retain some of the firm's earnings. The firm now has 400 shares of common stock outstanding, and it sells at a price of $50.00 per share. How much value has Janjigian's management added to stockholder wealth over the years, i.e., what is Janjigian's MVA?
Angelo Inc’s current balance sheet shows total common equity of $525,000. It has 99,000 shares of stock outstanding, and they sell at a price of $26.50 per share. By how much do the firm's market and book values per share differ?
