Question: 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:

help asap
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

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

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