Plant, Inc., is considering making an offer to purchase Palmer Corp. Plant's vice president

of finance has collected the following information:

Plant also knows that securities analysts expect the earnings and dividends of Palmer to

grow at a constant rate of $7$ percent each year. Plant management believes that the

acquisition of Palmer will provide the firm with some economies of scale that will

increase this growth rate to $9$ percent per year.

a$.$ What is the value of Palmer to Plant? $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What would Plant's gain be from this acquisition? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ If Plant were to offer $$27$ in cash for each share of Palmer, what would the NPV of the

acquisition be$?($Do not round intermediate calculations and round your answer to

$2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the most Plant should be willing to pay in cash per share for the stock of

Palmer? $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

e$.$ If Plant were to offer $232,000$ of its shares in exchange for the outstanding stock of

Palmer, what would the NPV be$?($Do not round intermediate calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Plant's outside financial consultants think that the $9$ percent growth rate is too optimistic

and a $8$ percent rate is more realistic.

f$-1.$ If Plant still offers $$27$ per share, what is the NPV with this new growth rate? $($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$.,32\mathrm{.}16.)$

f$-$ If Plant still offers $232,000$ shares, what is the NPV with this new growth rate? $($Do not

round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$