Question
Metallica Heavy Metal Mining (MHMM) Co. wants to diversify its operations. Recent financial information for the firm is as follows: PLEASE TYPE OUT THE ANSWER
Metallica Heavy Metal Mining (MHMM) Co. wants to diversify its operations. Recent financial information for the firm is as follows: PLEASE TYPE OUT THE ANSWER (NO IMAGES)
| Stock Price | $84 |
| Number of Shares | 30,000 |
| Total Assets | 8,000,000 |
| Total Liabilities | 3,400,000 |
| Net Income | 900,00 |
MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $850,000 and will be financed with a new equity issue. The return on investment will equal MHMMs current ROE. What will happen to the book value per share, market value per share and EPS? What is the NPV of the investment? Does dilution take place?
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Cryptocurrencies And The Energy Transition Challenges And Opportunities For A More Sustainable Economy
Authors: George Elias
1st Edition
B0C1J3FC7R, 979-8389404076
