Home / Questions / The Metallica Heavy Metal Mining (MHMM) Corporation wants todiversify its operations. Some
The Metallica Heavy Metal Mining (MHMM) Corporation wants todiversify its operations. Some recent financial information for thecompany is shown here: |
|
|
|
|
Stock price |
$ |
73 |
|
Number ofshares |
|
40,000 |
|
Total assets |
$ |
7,600,000 |
|
Totalliabilities |
$ |
2,200,000 |
|
Net income |
$ |
440,000 |
|
|
|||
MHMM is considering an investment that has the same PE ratio asthe firm. The cost of the investment is $800,000, and it will befinanced with a new equity issue. The return on the investment willequal MHMM’s current ROE. |
What is the current book value per share? The new book value pershare? (Do not round intermediate calculations and roundyour answers to 2 decimal places, e.g., 32.16.) |
|
|
Current bookvalue |
$ per share |
New book value |
$ per share |
|
|
What is the current market-to-book ratio? The new market-to-bookratio? (Do not round intermediate calculations and roundyour answers to 4 decimal places, e.g., 32.1616.) |
|
|
Currentmarket-to-book |
|
Newmarket-to-book |
|
|
|
What is the current EPS? The new EPS? (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.) |
|
|
Current earnings pershare |
$ |
New earnings pershare |
$ |
|
|
What is the NPV of this investment? (Negative amountshould be indicated by a minus sign. Do not round intermediatecalculations and round your answer to the nearest whole dollaramount, e.g., 32.) |
NPV |
$ |
Does accounting dilution occur here? |
||||
|
||||
|
||||
|
||||
Does market value dilution occurhere? |
||||
|
||||
|
Dec 01 2019 Read more Less More
Irrigate Smart Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On February 17 of the current year, Irrigate Smart Inc. reacquired ...
Apr 18 2020A SWOT analysis of Samsung Electronics Limited
Jul 27 2020Which of the following multilateral agreements was established under U.S. leadership in 1947, with the objective to liberalize trade by eliminating tariffs, subsidies, im...
Jan 11 2020Volcanoes that have a time between eruptions of 1,000 years or greater always have a Volcanic Explosivity Index of 5 or greater.2.The Pacific Ring of Fire includes two-th...
Feb 14 2020Sahine can't tell the dilference betCo Pepsi-the two taste exactly the same to he bet C a. What is Sabines marginal rale of sbtution inal rate Coke in place ol Pepsi? b. ...
Jun 01 2020In the US Management style, the staffing function is characterised byI. Rapid advancement desired. II. Loyalty to the profession. III. Slow promotion through ranks. IV...
Dec 27 20178. SegmentationThe client is trying to decide how to segment his target marketing and needs your consulting firm’s help.Describe the concept of segmentation and what bene...
Nov 09 2017A 400-kg satellite is placed in a circular orbit 6394 km above the surface of the earth. At this elevation the acceleration of gravity is 4.09m/s2. Knowing that its orbit...
Apr 03 2020How are the Russian citizens better off under their new and current economic and governmental structure rather than under the Communist system?
Apr 14 2020What impact, if any, will advances in technology have on survey research practices? Support your thoughts.2. EXPERIENCE THE INTERNET. Go to the Gallup Poll site ( www.gal...
Aug 08 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.