4 Plant, Inc., is considering making an offer to purchase Palmer Corp. Plant's vice president of finance has collected the following information: 1 points Plant Palmer Price-earnings ratio 16.0 11.6 Shares outstanding 1,650,000 900,000 Earnings $4,521,000 $1,107,000 Dividends $1,065,000 $ 485,000 eBook Print References Plant also knows that securities analysts expect the earnings and dividends of Palmer to grow at a constant rate of 3 percent each year. Plant management believes that the acquisition of Palmer will provide the firm with some economies of scale that will increase this growth rate to 5 percent per year. decimal places, e.g., 32.16.) e. If Plant were to offer 240,000 of its shares in exchange for the outstanding stock of Palmer, what would the NPV be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 1 points Plant's outside financial consultants think that the 5 percent growth rate is too optimistic and a 4 percent rate is more realistic. eBook Print References f-1. If Plant still offers $28 per share, what is the NPV with this new growth rate? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f- If Plant still offers 240,000 shares, what is the NPV with this new growth rate? (Do not 2. round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Value of Palmer $ b. Gain $ 26,941,411.72 14,100,211.72 1,741,411.72 29.93 C. $ d. NPV Maximum bid price NPV $ e. f-1. NPV f-2. NPV 4 Plant, Inc., is considering making an offer to purchase Palmer Corp. Plant's vice president of finance has collected the following information: 1 points Plant Palmer Price-earnings ratio 16.0 11.6 Shares outstanding 1,650,000 900,000 Earnings $4,521,000 $1,107,000 Dividends $1,065,000 $ 485,000 eBook Print References Plant also knows that securities analysts expect the earnings and dividends of Palmer to grow at a constant rate of 3 percent each year. Plant management believes that the acquisition of Palmer will provide the firm with some economies of scale that will increase this growth rate to 5 percent per year. decimal places, e.g., 32.16.) e. If Plant were to offer 240,000 of its shares in exchange for the outstanding stock of Palmer, what would the NPV be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 1 points Plant's outside financial consultants think that the 5 percent growth rate is too optimistic and a 4 percent rate is more realistic. eBook Print References f-1. If Plant still offers $28 per share, what is the NPV with this new growth rate? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f- If Plant still offers 240,000 shares, what is the NPV with this new growth rate? (Do not 2. round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Value of Palmer $ b. Gain $ 26,941,411.72 14,100,211.72 1,741,411.72 29.93 C. $ d. NPV Maximum bid price NPV $ e. f-1. NPV f-2. NPV