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My ROE is incorrect The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown

image text in transcribedMy ROE is incorrect

The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price 40 Number of 20,000 shares Total assets $6,400,000 Total liabilities $4,000,000 Net income $ 760,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $600,000, and it will be financed with a new equity issue. X Answer is complete but not entirely correct. 120.95 X percent if we wante The ROE on the investment would have to be (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $40 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.) $ Accountin dilution occur in this case. Market value dilution does not occur in this case

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