McConnell Corp. has a book value of equity of$13,380. Long-term debt is $8,550. Net working capital, other than cash, is $3,235. Fixed assets are $17,730 and current liabilities are $1,770.

How much cash does the company have?(Do not round intermediate calculations.)

Cash$__________

What are current assets?(Do not round intermediate calculations.)

Current assets$_________

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The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown here:

Stock price $50

Number of shares20,000

Total assets $8,400,000

Total liabilities $2,800,000

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 $600,000, and it will be financed with a new equity issue.(Do not round intermediate calculations.)

The ROE on the investment would have to be__________ percent(Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)if we wanted the price after the offering to be $50 per share (assume the PE ratio remains constant), and the NPV of the investment would be $______

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Consider the following premerger information about a bidding firm (Firm B)and a target firm (Firm T). Assume that both firms have no debt outstanding.

Firm B Firm TShares outstanding6,2001,400Price per share$48$18

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,600. Firm T can be acquired for $20 per share in cash or by exchange of stock wherein B offers one of its shares for every two of T's shares.

At what exchange ratio of B shares to T shares would the shareholders in T be indifferent between the two offers?(Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Exchange ratio _________to 1