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Stock price 77 Number of 20,000 shares Total assets Total liabilities $3,000,000 $6.200,000 $ 410,000...

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Finance

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Stock price 77 Number of 20,000 shares Total assets Total liabilities $3,000,000 $6.200,000 $ 410,000 Net income MHMM is considering an investment that has the same PE ratio as the firm. The cost of the investment is $700,000, and it will be financed with a new equity issue. The return on the investment will equal MHMM's current ROE. a. What is the current book value per share? The new book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) b. What is the current EPS? The new EPS? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the current market-to-book ratio? The new market-to-book ratio? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) d. 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 the nearest whole dollar amount, e.g., 32.) Current book value per share a. New book value per share b. Current EPS New EPS Current market-to-book ratio C. New market-to-book ratio d. NPV

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