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asap please os BQ, Incorporated, is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information: BQ
asap please
os BQ, Incorporated, is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information: BQ iReport Price-earnings ratio 14 9.6 Shares outstanding 1,600,000 150,000 Earnings $3,600,000 $630,000 Dividends $ 860,000 $ 310,000 BQ also knows that securities analysts expect the earnings and dividends of iReport to grow at a constant rate of 6 percent each year. BQ management believes that the acquisition of iReport will provide the firm with some economies of scale that will increase this growth rate to 8 percent per year. a. What is the value of Report to BQ? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would BQ's gain be from this acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If BQ were to offer $44 in cash for each share of Report, what would the NPV of the acquisition be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What's the most BQ should be willing to pay in cash per share for the stock of iReport? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. If BQ were to offer 270,000 of its shares in exchange for the outstanding stock of iReport, what would the NPV be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) round your answer to 2 decimal places, e.g., 32.16.) b. What would BQ's gain be from this acquisition? (Do not round interm calculations and round your answer to 2 decimal places, e.g., 32.16. c. If BQ were to offer $44 in cash for each share of iReport, what would acquisition be? (Do not round intermediate calculations and round decimal places, e.g., 32.16.) d. What's the most BQ should be willing to pay in cash per share for the s iReport? (Do not round intermediate calculations and round your ans decimal places, e.g., 32.16.) e. If BQ were to offer 270,000 of its shares in exchange for the outstandin iReport, what would the NPV be? (Do not round intermediate calculatie your answer to 2 decimal places, e.g., 32.16.) a. Value of Report b. Gain c. NPV d. Maximum share price e. NPV BQ's outside financial consultants think that thi Step by Step Solution
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