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

Stock price	$	77
Number of shares		20,000
Total assets	$	6,200,000
Total liabilities	$	3,000,000
Net income	$	410,000

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. The return on the investment will equal MHMMs current ROE.

What will happen to the book value per share? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Current book value	$ per share
New book value	$ per share

What will happen to the market-to-book ratio? (Do not round intermediate calculations and round your final answers to 4 decimal places. (e.g., 32.1616))

Current market-to-book
New market-to-book

What will happen to the EPS? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Current earnings per share	$
New earnings per share	$

What is the NPV of this investment? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)

NPV

$

Does accounting dilution occur here?

	Yes
	No

Does market value dilution occur here?

	No
	Yes