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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 $ 80 Number of shares 40,000 Total assets $8,800,000 Total liabilities $ 5,100,000 Net Income $ 900,000 MHMM is considering an Investment that has the same PE ratlo as the firm. The cost of the Investment is $640,000, and it will be financed with a new equity Issue. The ROE on the investment would have to be percent (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) if we wanted the price after the offering to be $50 per share (assume the PE ratio still remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required.) Accounting dilution occur in this case. Market value dilution locour in this case. 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 $ 80 Number of shares 40,000 Total assets $8,800,000 Total liabilities $ 5,100,000 Net Income $ 900,000 MHMM is considering an Investment that has the same PE ratlo as the firm. The cost of the Investment is $640,000, and it will be financed with a new equity Issue. The ROE on the investment would have to be percent (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) if we wanted the price after the offering to be $50 per share (assume the PE ratio still remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required.) Accounting dilution occur in this case. Market value dilution locour in this case
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