B3. (Book and market values) Consider the following information about the Dilbert Printing Company

B3. (Book and market values) Consider the following information about the Dilbert Printing Company. All data are in millions of dollars.

BOOK VALUE MARKET VALUE
Assets, December 31, previous year 1,000 2,000
Assets, December 31, latest year 1,200 1,400
Liabilities, December 31, previous year 600 900
Liabilities, December 31, latest year 650 1,050

a. What is the book value of stockholders’ equity at the end of the previous and latest years?
b. What is the market value of stockholders’ equity at the end of the previous and latest years?
c. For the latest year ending December 31, net income was $175 million. If Dilbert paid its stockholders cash dividends of $50 million, what is the total economic income of the stockholders during this year?

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