Problem 15-8 Price Dilution [LO3] Nemesis, Inc., has 205,000 shares of stock outstanding. Each share is worth $79, so the company's market value of equity is $16,195,000. Suppose the firm issues 44,000 new shares at the following prices: $79, $73, and $67 6:26 What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "O". Round your answers to 2 decimal places, e.g. 32.16.) Price Ex-Rights Effect Amount a. b. C. per share per share per share The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price $ Number of 70 25,000 shares Total assets $6,100,000 Total liabilities $3,500,000 Net income $ 770,000 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 44.19 percent 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 $70 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank- be certain to enter "O" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution if we wanted the price af Accounting diaution occur in this case