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help asap 2.5 sints BQ, Incorporated, is considering making an offer to purchase Report Publications. The vice president of finance has collected the following information:
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2.5 sints BQ, Incorporated, is considering making an offer to purchase Report Publications. The vice president of finance has collected the following information: Skipped Price-earnings ratio Shares outstanding Earnings Dividends BO Report 14 9.6 1,600,000 150,000 $ 3,600,000 $630,000 $ 860,000 $ 310,000 eBook Hint References BQ also knows that securities analysts expect the earnings and dividends of Report to grow at a constant rate of 6 percent each year. BQ management believes that the acquisition of Report will provide the firm with some economies of scale that will increase this growth rate to 8 percent per year. What is the value of Report to BQ? (Do not round intermediate calculations and 32.16.) BQ's outside financial consultants think that the 8 percent growth rate is too optimistic and a 7 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 BQ's 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 $44 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. 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.) f-5. If BQ were to offer 270,000 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-1. Value of Report f-2. Gain f-3. NPV f-4. Maximum share price f-5. NPV Step by Step Solution
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