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

	BQ			iReport
Price-earnings ratio		14.6			9.3
Shares outstanding		1,200,000			180,000
Earnings	$	3,900,000		$	645,000
Dividends	$	890,000		$	340,000

BQs 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 BQs 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 $40 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.	Whats 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 180,000 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.)