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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 price $

The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here:

Stock price $ 70
Number of shares 25,000
Total assets $ 6,100,000
Total liabilities $ 3,500,000
Net income $ 770,000

MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $700,000, and it will be financed with a new equity issue. (Do not round intermediate calculations.)

The ROE on the investment would have to be percent --------?(Round your answer to 2 decimal places (e.g., 32.16).) if we wanted the price after the offering to be $70 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.). Accounting dilution (Click to select)does notdoes occur in this case. Market value dilution (Click to select)doesdoes not occur in this case.

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