What is the npv of this investment

Reference no: EM131811642

Titans Inc. wish to diversify its operations. Titans financials are presented as follows:

Number of Shares	58,000
Stock Price	$80
Total Assets	$8,900,000
Total Liabilities	$3,800,000
Net Income	$920,000

Titans are considering an investment that has the same PE ratios as the firm. The costs of the investment is $1,200,000, and its will be financed with a new equity issue. The ROI will equal the current ROE. What will happen to the book value per share, the market value per share, and the EPS? What is the NPV of this investment? Does dilution take place? Please show how results are calculated.

Reference no: EM131811642

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