Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you help solve the following blank spaces using the numbers provided? Thank you!! Check my work BQ, Inc., is considering making an offer to
can you help solve the following blank spaces using the numbers provided? Thank you!!
Check my work 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 Shares Earnings 12.2 8.8 ratio 1,500,000 165,000 $4,600,000 $680,000 $ 960,000 $410,000 outstanding Dividends BQ also knows that securities analysts expect the earnings and dividends of iReport to grow at a constant rate of 4 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 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.,32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) acquisition be? (Do not round intermediate calculations and round your answer to 2 b. What would BQ's gain be from this acquisition? (Do not round intermediate c. If BQ were to offer $36 in cash for each share of iReport, what would the NPV of the 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 190,000 of its shares in exchange for the outstanding stock of Prev 1 of 1Next Saved Help Save & Exit Submit Check my work 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 190,000 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.) a. Value of iReport b. Gain c. NPV d. Maximum share price S e. NPV 8,479,350.00 2,494,800.00 51.39 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 f-2. What would BQ's gain be from this acquisition? (Do not round intermediate and round your answer to 2 decimal places, e.g., 32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) Prev1 of 1 Next Saved Help Save & Exit Submit Check my work 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 f-2. What would BQ's gain be from this acquisition? (Do not round intermediate f-3. If BQ were to offer $36 in cash for each share of iReport, what would the NPV of the and round your answer to 2 decimal places, e.g., 32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) acquisition be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What's the most BQ should be willing to pay in cash per share for the stock of Report? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If BQ were to offer 190,000 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-4. f-5. f-1. Value of iReport f-2. Gain f-4. Maximum share price Check my work 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 Shares Earnings 12.2 8.8 ratio 1,500,000 165,000 $4,600,000 $680,000 $ 960,000 $410,000 outstanding Dividends BQ also knows that securities analysts expect the earnings and dividends of iReport to grow at a constant rate of 4 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 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.,32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) acquisition be? (Do not round intermediate calculations and round your answer to 2 b. What would BQ's gain be from this acquisition? (Do not round intermediate c. If BQ were to offer $36 in cash for each share of iReport, what would the NPV of the 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 190,000 of its shares in exchange for the outstanding stock of Prev 1 of 1Next Saved Help Save & Exit Submit Check my work 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 190,000 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.) a. Value of iReport b. Gain c. NPV d. Maximum share price S e. NPV 8,479,350.00 2,494,800.00 51.39 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 f-2. What would BQ's gain be from this acquisition? (Do not round intermediate and round your answer to 2 decimal places, e.g., 32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) Prev1 of 1 Next Saved Help Save & Exit Submit Check my work 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 f-2. What would BQ's gain be from this acquisition? (Do not round intermediate f-3. If BQ were to offer $36 in cash for each share of iReport, what would the NPV of the and round your answer to 2 decimal places, e.g., 32.16.) calculations and round your answer to 2 decimal places, e.g., 32.16.) acquisition be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What's the most BQ should be willing to pay in cash per share for the stock of Report? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If BQ were to offer 190,000 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-4. f-5. f-1. Value of iReport f-2. Gain f-4. Maximum share price Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started