Question: please do f1-f5 BQ, Incorporated, is considering making an offer to purchase IReport Publications. The vice president of finance has collected the following information: BQ

please do f1-f5
please do f1-f5 BQ, Incorporated, is considering making an offer to purchase
IReport Publications. The vice president of finance has collected the following information:

BQ, Incorporated, is considering making an offer to purchase IReport Publications. The vice president of finance has collected the following information: BQ also knows that securities analysts expect the earnings and dividends of iReport to grow at a constant rate of 5 percent each year. BQ management believes that the acquisition of iReport will provide the firm with some economies of scale that will increase this growth rate to 7 percent per year. a. What is the value of iReport to BQ? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. 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.) c. If BQ were to offer $32 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.) d. 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.) e. If BQ were to offer 260,000 of its shares in exchange for the outstanding stock of iReport, what would the NPV be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) BQ's outside financial consultants think that the 7 percent growth rate is too optimistic and a 6 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 $32 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 260,000 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.)

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