The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: $ 30 30,000 Stock price Number of shares Total assets Total liabilities Net income $8,600,000 $4,400,000 $ 780,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $750,000, and it will be financed with a new equity issue. percent if we wanted the price The ROE on the investment would have to be (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $30 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution occur in this case. Accounting dilution percent if we wanted the price The ROE on the investment would have to be (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $30 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution occur in this case. Accounting dilution does not does stment that has the same PE ratio as the firm. The cost of nd it will be financed with a new equity issue. have to be percent if we wanted the price after lations. Enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) sume the PE ratio remains constant), and the NPV of the investment would be to enter "0" wherever required. Do not round intermediate calculations.) ution occur in this case. Accounting dilution does not does The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: $ 30 30,000 Stock price Number of shares Total assets Total liabilities Net income $8,600,000 $4,400,000 $ 780,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $750,000, and it will be financed with a new equity issue. percent if we wanted the price The ROE on the investment would have to be (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $30 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution occur in this case. Accounting dilution percent if we wanted the price The ROE on the investment would have to be (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) the offering to be $30 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) occur in this case. Market value dilution occur in this case. Accounting dilution does not does stment that has the same PE ratio as the firm. The cost of nd it will be financed with a new equity issue. have to be percent if we wanted the price after lations. Enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) sume the PE ratio remains constant), and the NPV of the investment would be to enter "0" wherever required. Do not round intermediate calculations.) ution occur in this case. Accounting dilution does not does
