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Stock price $ 9 0 Number of shares 2 5 , 0 0 0 Total assets $ 7 , 7 0 0 , 0 0

Stock price $ 90
Number of shares 25,000
Total assets $ 7,700,000
Total liabilities $ 3,700,000
Net income $ 640,000The company 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 return on the investment will equal the company's current ROE.
a. What is the current book value per share and the book value per share with the investment? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
b. What is the current market-to-book ratio and the market-to-book ratio with the investment? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g.,32.1616.)
c. What is the current EPS and the EPS with the investment? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
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, e.g.,32.) a. Current book value per share
New book value per share
b. Current market-to-book
New market-to-book
c. Current EPS
New EPS
d. NPV

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