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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: MHMM
The Metallica Heavy Metal Mining MHMM Corporation wants to diversify its operations.
Some recent financial information for the company is shown here:
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 return
on the investment will equal MHMMs current ROE.
a What is the current book value per share? The new book value per share? Do not
round intermediate calculations and round your answers to decimal places, eg
b What is the current EPS? The new EPS? Do not round intermediate calculations and
round your answers to decimal places, eg
c What is the current markettobook ratio? The new markettobook ratio? Do not
round intermediate calculations and round your answers to decimal places, eg
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 amount, eg
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