9.The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price $ 50 Number of shares 50,000 Total assets $ 8,100,000 Total liabilities $ 4,900,000 Net income $ 750,000

MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $640,000, and it will be financed with a new equity issue.

The ROE on the investment would have to be_____% if we wanted the price after the offering to be $50 per share (assume the PE ratio remains constant), and the NPV of the investment would be _______ .

Accounting dilution ______ occurs in this case

Market value dilution ________ occurs in this case.