Not sure how to work on this question. I'm doing some practice and so far the ones that I have chosen are not accurate. Please assist with some guidance on how to work on a question like this.

Quisco Systems has 6.67 billion shares outstanding and a share price of $17.57. Quisoo is considenng developing a new networking product in-house at a cost of $502 million. Alternatively, Quisoo can acquire a rm that already has the technology for $905 million worth (at the current price) of Ouisoo stock. Suppose that absent the expense of the new technology. Quisoo will have EPS of $0.52. 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 30%. and the number of shares outstanding is unchanged h. Suppose Quisco does not develop the product house but instead acquires the technology. What etlect would the acquisition have on Quisoo's EPS this year? (Note that acquisition expenses do not appear directly on the income statement. Assume the rm was acquired at the start at the year and has no revenues or expenses of its own, so that the only elkct on EPS is due to the change in the number of shares outstanding) 1:. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain. a. Suppose Quisoo develops the product in-house. What impact would the development cost have on Guisoo's EPS'i Assume all costs are incurred this year and are treated as an RliD expense, Quisco's tax rate is 30%, and the number of shares outstanding is unchanged. (Select from the drop-down menus.) If Quisoo develops the product in-house, its earnings would rise by $456.5 million. With no change to the number at shares outstanding. its EPS would increase by $0.053 to ISOAS i (Assume the new product would not change this year's revenues) b. Suppose Qulsoo does not develop the product Invhouse but Instead acquires the technology. What eect would the acquisition have on Qulsoo's EPS this year? (Note that acquisition expenses do not appear directly on the Income statement. Assume the rm 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.) (Select from the drop-dawn menus.) if Quisoo acquim the technology tor $905 million worth oi its stock, it will issue 58.7 million new shares. Since earnings without this transaction are $5.47 billion. its EPS with the purchase is $1.05 . 1:. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain. (Select all the choices that apply.) Acquinng the technology would have a smaller impact on eamlrrgs, but this method is not cheaper. Developing it in-house is less costly and provides an immediate tax benet The earnings impact is not a good measure of the expense. Because the acquisition pennanentty increases the number of shares outstanding. it will reduce Quisco's earnings per share in future years as well. F??? Because the acquisition pennanentiy decreases the number of shares outstanding, it will increase Quiseo's earnings per share in future years as well