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BQ, Inc., is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information: BQ also knows that

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BQ, Inc., is considering making an offer to purchase iReport Publications. The vice president of finance has collected the following information: 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 iReport to BQ? b. What would BQ's gain be from this acquisition? c. If BQ were to offer $35 in cash for each share of iReport, what would the NPV of the acquisition be? d. What's the most BQ should be willing to pay in cash per share for the stock of iReport? e. If BQ were to offer 200,000 of its shares in exchange for the outstanding stock of iReport, what would the NPV be

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