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 View more View Less
Briefly summarize the differences in how the Internet, a company intranet, and an extranet are accessed and used.
Jul 15 2020According to Porter, to be effective the organization's goals, objectives, culture, and activities must be consistent with the organization's strategy12) A busin...
Dec 07 2019Out-of-class activity In the past, leading (leftmost) digits of the amounts on checks have been analyzed for fraud. For checks not involving fraud, the leading digit of...
May 22 2021Find the Maclaurin series for f(x) using the definition of a Maclaurin series. [Assume that f has a power series expansion. Do not show that R, (x) →0.] f(x) = In(1 + 3x)...
May 31 202152. MC.18-058Scoresby Co. uses 6 machine hours and 2 direct labor hours to produce Product X. It uses 8 machine hours and 16 direct labor hours to produce Product Y. Scor...
Sep 08 2020Osborne Excavation Company is planning an investment of $315,000 for a bulldozer. The bulldozer is expected to operate for 1,850 hours per year for five years. Customers ...
May 03 2020Question Not yet answered Marked out of 2.00 P Flag question Strategic issues in SCOM include such decisions as production or transportation planning as well as inventory...
Apr 17 202185) The following information is available for Don't Pay a Cent Corporation for the year ended December 31, 2010:Sales revenue$300,000Sales commissions$7,500Purchases...
Dec 24 2019What does it mean to say that financing is a zero-NPV transaction? 114. What information is contained in the shareholders' equity account in the firm's financial ...
Jan 09 2020What are the balances for the Work-in-Process Inventory fot Sept. 30; Finished Goods Inventory for Sept. 30 and the Cost of Goods Sold for September?Below is a pic of the...
Sep 15 2020