What is the current book value per share

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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 $74

Number of shares 30,000

Total assets $9,800,000

Total liabilities $4,700,000

Net income $420,000

The company 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 return on the investment will equal the company's current ROE.

What is the current book value per share and the book value per share with the investment?

What is the current market-to-book ratio and the market-to-book ratio with the investment?

What is the current EPS and the EPS with the investment?

What is the NPV of this investment?

Does accounting dilution occur here?

Does market value dilution occur here?

Reference no: EM132973219

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