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Unformatted text preview: Chapter 20 Question 12 Input Area: 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 $73.000 Output Area: $1.00 #REF! ROE #REF! If the share price after the offering is the same, then the project NPV is #REF! Accounting dilution still takes place, as the BVPS still falls from #REF! to #REF! , but no market value dilution taked place because the firm is investing in a zero NPV project. P/E EPS 1 Net income 1...
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This note was uploaded on 02/12/2012 for the course MBA 551 taught by Professor Smith during the Spring '11 term at Indiana Wesleyan.
- Spring '11