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I just can't figure out the NPV, the rest of the problem is correct. don't know what I am doing wrong. The Metallica Heavy Metal
I just can't figure out the NPV, the rest of the problem is correct. don't know what I am doing wrong.
The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price 74 Number of 30,000 shares Total assets Total liabilities $4,700,000 $9,800,000 420,000 Net income MHMM is considering the investment is $640,000, and it will be financed with a new equity issue. The return on the investment will equal MHMM's current ROE. an investment that has the same PE ratio as the firm. The cost of 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 EPS? The new EPS? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the current market-to-book ratio? The new market-to-book ratio? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) d. What is the NPV of this investment? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) Current book value per share 170.00 a. New book value per share 148.52 b. Current EPS 14.00 New EPS 12.24 Current market-to-book ratio 0.4353 C. New market-to-book ratio 0.4360 d. NPVStep by Step Solution
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