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BQ. Incorporated, Is considering making an offer to purchase IReport Publications. The vice president of finance has collected the following information: BQ also knows that
BQ. Incorporated, Is considering making an offer to purchase IReport Publications. The vice president of finance has collected the following information: BQ also knows that securttes analysts expect the earnings and divdends of IReport to grow at a constant rate of 4 percent each year. BQ management belleves that the acquisition of IReport will provide the firm with some economies of scale that will increase this growth rate to 6 percent per year. a. What is the value of IReport to BQ? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 3216.) b. What would BQ's gain be from this acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 3216.) c. If BQ were to offer $32 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.9. 3216.) e. If BQ were to offer 210,000 of lts shares in exchange for the outstanding stock of IReport, what would the NPV be? (Do not round intermedlate calculations and round your answer to 2 decimal places, e.g., 3216.) BQ's outside financial consultants think that the 6 percent growth rate is too optimistic and a 5 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.9., 3216.) 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. . 3216.) f-3. If BQ were to offer $32 in cash for each share of IReport, what would the NPV of the acquisitton 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., 3216.) f-5. If BQ were to offer 210,000 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. 3216.)
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