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Quo Systems housion has outstanding and asher price 18:44.Quito cering developing artworking product in house at a cost of 511 milyon marwady as the technology

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Quo Systems housion has outstanding and asher price 18:44.Quito cering developing artworking product in house at a cost of 511 milyon marwady as the technology for $800 milion worth the current price of Quisco took Suppose that absent the expense of the technology uso will have EPS of 50.83 #Supose Quisico develops the product in house. What impact would the development cost have on Go EPS Amal costs incurred this year andere R&D expense Gucco trate is 25 and the number of shares outstanding unchanged b. Suppone Gulsce does not develop the product in house but instead guires the technology. Wheffect would the acquiston raw on Cuco's EP3 th your? Note that to expenses do not appear directly on the Wotentment Autume the fem was aquest at the start of the year and is no revenues or expenses of its own so that the only effect on EPS is due to the change in the number of shores outstanding c. Which method of acquiring the technology has a motor mpact on caming? Is this method cheaper? Explain #Suppose Quince develops the product in home. What mpach would the development contheon Quincon EPS? Assume al costs are curred this year and are treated is excenes Outcome tax cuts 25%and the number of share outstanding is unchanged Ousico's new EPs would be found 10 the nearest cent.) 5. Suppose Qulico does not develop the product in house but instead actures the echology Wam effort would the contestate's EPS ta yeut? to that acquition expenses to rat per directly on * Anname them was acquired at the port of the year and has to runs or expense of is own, an tot een effect on EPSI due to the change in the number of rates standing) Gusto EPs with the purchase found to the nearest cent) c. Which method of acquiring the technology cheaper for us? (Sectroes the crop-down menu income statement Wo che per for Quico

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