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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 Number
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 80 40,000 7,600,000 S 2,200,000 S 440,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $800,000, and it will be financed with a new equity issue percent (Do not round intermediate The ROE on the investment would have to be calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) if we wanted the price after the offering to be $80 per share (assume the PE ratio remains constant), and the NPV of the investment would be (Leave no cells blank-be certain to enter "O" wherever required. occur in this case Do not round intermediate calculations.). Accounting dilution does Market value dilution does not occur in this case
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