Describe what would the roe on the investment, Operation Management

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Dilution In the previous problem, what would the ROE on the investment have to be if we wanted the price after the offering to be $73 per share (assume the PE ratio still remains constant)?

Stock price $73
Number of shares 45,000
Total assets $6,500,000
Total liabilities $2,600,000
Net Income $630,000
Cost $1,100,000
P/E0

 


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