Titans Inc. wish to diversify its operations. Titans financials are presented as follows:
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Number of Shares
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58,000
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Stock Price
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$80
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Total Assets
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$8,900,000
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Total Liabilities
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$3,800,000
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Net Income
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$920,000
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Titans 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.