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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 $ 50
Number of shares 30,000
Total assets $ 6,300,000
Total liabilities $ 3,300,000
Net income $ 390,000

MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $750,000, and it will be financed with a new equity issue.

The ROE of the investment would have to be____________________percent.

If we wanted the price after the offering to be $50 per share (assume the PE ratio remains constant and the NPV of the investment would be________________

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