Question
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 | $ | 73 | |
| 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. The return on the investment will equal MHMM |
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Finance Accumulation And Monetary Power
Authors: Daniel Woodley
1st Edition
0367338556, 978-0367338558
