Qusco Systems has 64 billion shares outstanding and a share price of $18.53. Qusoo is considering developing a new networking product in house at a cost of $467 million Memalively, Quisco can acquire a fem th technology for $045 million worth (at the cument price) of Quisco stock Suppose that absent the expense of the new technology Quisco wit have EPS of $0.95 Suppose Quaco develops the product in house What impact would the development cost have on Quison's EPS? Assume all costs are incured the and are tested as an R&D spense, Qus 30%, and the number of shares outstanding is unchanged b. Suppose Quisco does not develop the product in house but instead acquires the technology What effect would the action have on Quisor's EPS this year? (Note that in expenses do not appear directy on the incom Assume the frm was acquired at the start of the year and has no revenues or expenses of its own, so that the only affect on EPS is due to the charge in the number of the unng Which method of acquiring the technology has a smaller impact on earrings? is this method cheaper? Explain Suppose Quaco develops the product in house. What impact would the development cost have on Quince's EPS? Assume al costs are incumed the year and are treated as an R&D expense, Quacua xe 20% and he shares outstanding is unchanged Quisco's new EPS would be $Round to the nearest cent b. Suppose Queco does not develop the product in house but instead acquires the technology What effect would the acquisition have on Que's EPS this year? (Note that action expendent apply on the ment Assume the firm was acquired at the start of the year and has no revenues or expences of ts own, so that the only effect on EPS is due to the change in the number of shares onding) Quaco's EPS with the purchase is $ (Round to the nearest cent) c. Which method of acquiring the technology is cheaper for Quico? (Select from the drop-down menu Ys cheaper for Quis Assignment " 833 0: MacBook Air 00 D D " " " " . Time Remaining Next +