BQ also knows that securities analysts expect the earnings and dividends of iReport to grow at a constant rate of 5 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 7 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 $35 in cash for each share of iReport, 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 200,000 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.) Value of Report $ 6.096.500.00 wewe - pot 6,096,500.00 a. Value of Report b. Gain C. NPV d. Maximum share price e. NPV ces BQ's outside financial consultants think that the 7 percent growth rate is too optimistic and a 6 percent rate is more realistic. f-1. What is the value of iReport to BQ now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f-2. What would BO's gain be from this acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) f.3. If BQ were to offer $35 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 Horimallar en 22161 BQ's outside financial consultants think that the 7 percent growth rate is too optimistic and a 6 percent rate is more realistic. f-1. What is the value of iReport to BQ now? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f-2. 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.) f-3. If BQ were to offer $35 in cash for each share of iReport, 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.) f-4. 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.) f-5. If BQ were to offer 200,000 of its shares in exchange for the outstanding stock of iReport, what would the NPV be? (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-1. Value of Report f-2. Gain 1-3. NPV Maximum share price 14. ORAN 10 Next f-2. 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.) f-3. If BQ were to offer $35 in cash for each share of Report, what would the NPV of acquisition be? (Do not round Intermediate calculations and round your answe 2 decimal places, e.g., 32.16.) f-4. 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.) f-5. If BQ were to offer 200,000 of its shares in exchange for the outstanding stock o iReport, what would the NPV be? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to decimal places, e.g., 32.16.) f-1. Value of Report f-2. Gain f-3. NPV f-4. Maximum share price 1-5. NPV Saved 9 BQ, Inc., is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information: Dints 12.4 iReport 8.9 Price-earnings ratio Shares outstanding Earnings Dividends eBook 1,600,000 170,000 $4,700,000 $685,000 $ 970,000 $420,000 References BQ also knows that securities analysts expect the earnings and dividends of Report to grow at a constant rate of 5 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 7 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 BO's gain be from this acquisition? (Do not round Intermediate calculations and round your answer to 2 decimal places, e... 32.16.) c. If BO were to offer $35 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.) Mc CI Psy 9 of 10 !!! Next >
