Titans Inc. wish to diversify its operations
June 7th, 2024
Titans Inc. wish to diversify its operations. Titans financials are presented as follows:Number of Shares58,000Stock Price$80Total Assets$8,900,000Total Liabilities$3,800,000Net Income$920,000Titans are considering an investment that has the same PE ratios as the firm. The costs of the investment is $1,200,000, and its will be financed with a new equity issue. The ROI will equal the current ROE. What will happen to the book value per share, the market value per share, and the EPS? What is the NPV of this investment? Does dilution take place? Please show how results are calculated.