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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 $ 80
Number of shares 40,000
Total assets $ 7,600,000
Total liabilities $ 2,200,000
Net income $ 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.

what will the ROE on the investment have to be?

if we want the price after the offering to be $80 per share( assume the PE ration remains constant ), and the NPV would be?

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