Quisco Systems has 6.3 billion shares outstanding and a share price of $1757 Quisco is considering developing a new networking product in house at a cost of 5543 million Alternatively, Quisco can acquire aim that keady has the technology for $903 milion worth at the current price) of Quis.co stock. Suppose that absent the expense of the new technology, Quisco will have EPS of SO 87 a. Suppose Quisco develops the product in house What impact would the development cost have on Quisco's EPS? Assume all costs are incurred this year and are treated as an R&D expense, Quisco's tax rate is 35%, and the number of shares outstanding is unchanged b. Suppose Quisce does not develop the product in house but instead acquires the technology What affect would the acquisition have on Quisco's EPS this year? (Note that acquisition expenses do not appear directly on the income statement Assume the firm was acquired the start of the year and has no revenues or expenses of its own, so that the only effect on EPS is due to the change in the number of shares outstanding) c. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain a. Suppose Quico develops the product in house What impact would the development cost have on Quisco's EPS? Assume all costs are incurred this year and are treated as an R&D expense, Quisco's tax rate is 35%, and the number of shares outstanding is unchanged Quisco's new EPS would be Round to the nearest cent) b. Suppose Quisco does not develop the product in house but instead acquires the technology What affect would the acquisition have on Quisco'EPS this year? (Note that acquisition expenses do not appear directly on the income statement Assume the firm was acquired at the start of the year and has no revenues or expenses of its own, so that the only effect on EPS is due to the change in the number of shares outstanding) Quisco's EPS with the purchase is 5 (Round to the nearest cont.) c. Which method of acquiring the technology is cheaper for Quisco? (Select from the drop-down menu) Developing technology in house is cheaper for Quisco