The Hagerman Heavy Metal Mining $($H$2$M$2)$ Corporation wants to diversify its operations. Some recent financial information for the company is shown here:

Stock price $ $56$

Number of shares $50,000$

Total assets $ $8,800,000$

Total liabilities $ $5,100,000$

Net income $ $900,000$

H$2$M$2$ is considering an investment that has the same P$/$E ratio as the firm. The cost of the investment is $$640,000,$ and it will be financed with a new equity issue. The return on the investment will equal H$2$M$2$s current ROE.

What will happen to the book value per share? $($Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

Current book value $

per share

New book value $

per share

What will happen to the market$-$to$-$book ratio? $($Do not round intermediate calculations. Round the final answers to $3$ decimal places.$)$

Current market$-$to$-$book

New market$-$to$-$book

What will happen to the EPS? $($Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

Current earnings per share $

New earnings per share $

What is the NPV of this investment? $($Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Omit $ sign in your response.$)$

NPV $

Does accounting dilution occur here?

multiple choice $1$

Yes

No

Does market value dilution occur here?

multiple choice $2$

Yes

No