Some recent financial information for the company is shown
here:
considering an investment that has the same P/E 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 H2M2’s current ROE.
What will happen to the book value per share? (Do
not round intermediate calculations. Round the final answers to 2
decimal places. Omit $ sign in your
response.)
What will happen to the market-to-book ratio? (Do
not round intermediate calculations. Round
the fianl answers to 3 decimal places.)
What will happen to the EPS? (Do not round
intermediate calculations. Round the final
answers to 2 decimal places. Omit $ sign in
your response.)
What is the NPV of this investment? (Negative
answer should be indicated by a minus
sign. Do not round intermediate
calculations. Round the final answer to the
nearest whole dollar. Omit $ sign in your
response.)
NPV
$
Some recent financial information for the company is shown here: considering an investment that has the same P/E ratio a
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am