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The Metallica Heavy Metal Mining ( MHMM ) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock
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 shares
Total assets $
Total liabilities $
Net income $
MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $ 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. Enter your answer as a percent rounded to decimal places, eg
if we wanted the price after the offering to be $ per share assume the PE ratio remains constant and the NPV of the investment would be
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