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15-10 Dilution [LO3] he Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here:

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15-10 Dilution [LO3] he Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price $ Number of hares Total assets $9,400,000 Total liabilities $4,100,000 Net income 980,000 75 64,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost the investment is $1,500,000, and it will be financed with a new equity issue. The return on the investment will equal MHMM's current ROE. a. What is the current book value per share? The new book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) b. What is the current market-to-book ratio? The new market-to-book ratio? (Do not c. What is the current EPS? The new EPS? (Do not round intermediate calculations and d. What is the NPV of this investment? (A negative answer should be indicated by a round intermediate calculations and round your answers to 4 decimal places, e.g 1616.) round your answers to 2 decimal places, e.g., 32.16.) minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Current book value New book value b. Current market-to-book New market-to-book c. Current earnings per share New earnings per share

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