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

BQiReport

Price-earnings ratio15.58.8

Shares outstanding1,300,000170,000

Earnings$4,400,000$670,000

Dividends$940,000$390,000

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 iReport to BQ?

I really need answer for A so that I can solve by myself

BQ, lnc., is considering making an offer to purchase iReport Publications. The vice president of nance has collected the following information: BQ iReport Price-earnings ratio 15.5 8.8 Shares outstanding 1,300,000 170,000 Earnings $4,400,000 $ 670,000 Dividends $ 940,000 $ 390,000 30 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 rm with some economies of scale that will increase this growth rate to 8 percent per year. a. What is the value of iReport to BO? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of iReport $ |:| 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.) Gain $ |:| c. If BQ were to offer $38 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.) NPV $ E 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.) Maximum share price $ |:| e. If BQ were to offer 160,000 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.) NPV $ |:|