The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price $ 74 Number of shares 30,000 Total assets $ 9,800,000 Total liabilities $ 4,700,000 Net income $ 420,000 MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $640,000, and it will be financed with a new equity issue. The additional net income is $52,704.

What is the old book value (of equity) per share?

a. $326.67

b. $156.67

c. $170

d. $74

e. $483.33