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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 $
The company 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 the company's current ROE.
a What is the current book value per share and the book value per share with the investment? Do not round intermediate calculations and round your answers to decimal places, eg
b What is the current markettobook ratio and the markettobook ratio with the investment? Do not round intermediate calculations and round your answers to decimal places, eg
c What is the current EPS and the EPS with the investment? 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, eg
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