5. BH, Inc., is considering making an offer to purchase Spearfish Publications. The vice president of finance has collected the following information. Price-Earnings ratio Shares outstanding Earnings Dividends BH, Inc. 14.5 1,400,000 4,300,000 1,075,000 Spearfish Publications 9.2 195,000 705,000 375,000 BH also knows that securities analysts expect the earnings and dividends of Spearfish Publications to grow at a constant rate of 5 percent each year. BH management believes that the acquisition of Spearfish Publications will provide the firm with some economies of scale that will increase this growth rate to 7 percent per year. (20 points) a. What is the value of Spearfish Publications to BH? (4 points) I b. What would BH's gain be from this acquisition? (4 points) c. If BH were to offer $38 in cash for each share of Spearfish Publications, what would the NPV of the acquisition be? (4 points) d. What's the most BH should be willing to pay in cash per share for the stock of Spearfish Publications? (4 points) e. If BH wear to offer 205,000 of its shares in exchange for the outstanding stock of Spearfish Publications, what would the NPV be? (4 points)