Question
The all-equity firm Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock
| The all-equity firm Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: |
| Stock price | $ | 77 | |
| Number of shares | 20,000 | ||
| Total assets | $ | 6,200,000 | |
| Total liabilities | $ | 3,000,000 | |
| Net income | $ | 410,000 | |
| 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. The return on the investment will equal MHMMs current ROE. What is the NPV of this investment? |
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The Technology Procurement Handbook A Practical Guide To Digital Buying
Authors: Sergii Dovgalenko
1st Edition
1789662125, 978-1789662122
