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Check my work 6 The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown
Check my work 6 The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: 10 points eBook Stock price $ 50 Number of 25,000 shares Total assets $ 7,700,000 Total liabilities $3,700,000 Net income $ 640,000 References MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $700,000, and it will be financed with a new equity issue. The ROE on the investment would have to be 18.49 percent if we wante (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $50 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution occur in this case. $ Accountir E ratio as the firm. The cost of ew equity issue. percent rounded to 2 decimal places, e.g., 32.16.) it), and the NPV of the investment would be Do not round intermediate calculations.) 18.49 percent if we wanted the price after $ 5 Accounting dilution occur in this case
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