The problem provides information about Sheng, Inc.'s stock and financial data. The questions ask for: a. The market value of the stock. b. The book value per share. c. The liquidation value per share.

1. Problem Description

The problem provides information about Sheng, Inc.'s stock and financial data. The questions ask for:

a. The market value of the stock.

b. The book value per share.

c. The liquidation value per share.

2. Solution Steps

a. Market Value of the Stock:

The problem states that Sheng, Inc. stock currently sells for $70 per share. It also states that there are 10,000 shares of common stock outstanding.

Therefore, the total market value of the stock is the price per share multiplied by the number of shares.

$Market\ Value = Price\ per\ share * Number\ of\ shares$

$Market\ Value =$70 * 10000 = $700000$

b. Book Value per Share:

Book value per share is calculated using the following formula:

$Book\ Value\ per\ share = \frac{Total\ Assets - Total\ Liabilities}{Number\ of\ Shares\ Outstanding}$

Given:

Total Assets = $1,300,000

Total Liabilities = $350,000

Number of Shares Outstanding = 10,000

Book\ Value\ per\ share = \frac{1300000 - 350000}{10000} = \frac{950000}{10000} = $95$

c. Liquidation Value per Share:

Liquidation value per share is calculated by dividing the liquidation value of assets by the number of shares outstanding.

$Liquidation\ Value\ per\ Share = \frac{Liquidation\ Value\ of\ Assets}{Number\ of\ Shares\ Outstanding}$

Given:

Liquidation Value of Assets = $760,000

Number of Shares Outstanding = 10,000

Liquidation\ Value\ per\ Share = \frac{760000}{10000} = $76$

3. Final Answer

a. Market value of the stock: $700000

b. Book value per share: $95

c. Liquidation value per share: $76