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

Stock price$60Number of shares20,000Total assets$8,400,000Total liabilities$3,900,000Net income$870,000

MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $600,000, and it will be financed with a new equity issue.

The ROE on the investment would have to bepercent(Do not round intermediate calculations and 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 $60 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

does not

occur in this case. Market value dilution(Click to select)

does not

does

occur in this case.