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

Stock price$73Number of shares40,000Total assets$7,600,000Total liabilities$2,200,000Net income$440,000

MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $800,000, and it will be financed with a new equity issue. The return on the investment will equal MHMM's current ROE.

What is the new price per share if the investment is made?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

New price$

What will happen to the book value per share?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Current book value$per shareNew book value$per share

What will happen to the market-to-book ratio?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Current market-to-bookNew market-to-book

What will happen to the EPS?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Current earnings per share$New earnings per share$

What is the NPV of this investment?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV$

Does accounting dilution occur here?

YesNo

Does market value dilution occur here?NoYes