Please help, thank you

8. BQ, Incorporated, is considering making an offer to purchase iReport Corporation. BQs vice president of finance has collected the following information:

	BQ	iReport
Price-earnings ratio	16.1	11.7
Shares outstanding	1,660,000	910,000
Earnings	$4,565,000	$1,128,400
Dividends	$1,066,000	$486,000

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? What would BQs gain be from this acquisition?

b. If BQ were to offer $29 in cash for each share of iReport, what would the NPV of the acquisition be?

c. What is the most BQ should be willing to pay in cash per share for the stock of iReport?

d. If BQ were to offer 241,000 of its shares in exchange for the outstanding stock of iReport, what would the NPV be?

e. BQ's outside financial consultants think that the 7 percent growth rate is too optimistic and a 6 percent rate is more realistic. If BQ still offers $29 per share, what is the NPV with this new growth rate? If BQ still offers 241,000 shares, what is the NPV with this new growth rate?