question - passage below require rephrasing

Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. Your employer is also considering the purchase of Biggerstaff & McDonald (B&M), a privately held company owned by two friends, each with 5 million shares of stock. B&M currently has free cash flow of $24 million, which is expected to grow at a constant rate of 5%. B&Ms financial statements report short-term investments of $100 million, debt of $200 million, and preferred stock of $50 million. B&Ms weighted average cost of capital (WACC) is 11%. Answer the following questions.

1. One of the most important rights that stockholder has is to be able to share in the profits of the firm. The common stockholders also have the right to elect the board of directors for the firm. These elected board members elected the manages of the business. Stockholders also have the right to buy additional shares sold by the firm, this is called the preemptive right.

2.Free cash flow is the cash that is available for all of the companys investors. This cash is made by the services or products that the company produces. Free cash for this firms is $24,000,000. The weighted average cost of capital is a calculation that includes the bonds, debts, common stocks and preferred stock of the company. Weighted average cost of capital for this organization is 11%. The free cash flow valuation is the idea that the values of the business is equal to the current value of it free cash flow.

3. Equality is a residual claim because the debt holders have the first claim of the company, next is the perfeered stockholders. All of the remaining value is owned by the stockholders.

4. The formula for present value of expected free cash flows when discounter at the WACC would be

Vop=FCF1(WACC-gL)

If the free cash flow is expected to grow at a constant rant the formula would be

Vop=FCF0(1+gL)(WACC-gL)

There are many different advantages and disadvantages in expanding the organization. There is a large potential to expand employment for the company. The acquisition of the temp force company could provide the organization with a hire revenue stream and more yearly profits. This could also lesson the overall debts of the company with the creation of more wealth. It could be a very dangerous move for the organization and create a lot of financial risk, because everything would be operated under the parent company. The risk also comes from the merged companies becoming the minority stockholders of the parent company.

This would cause an ethical imbalance for the parents company and all of the risk would be taken on by the parent company. The risk and reward is something that needs to be considered by the parent company. B&B and temp force would both be good merger for the growth and wealth of the organizations. The main ethical issue is the risk that the parent company is taking regard the majority shareholder for the company. This ethical risk would be outweighed by the potential for financial growth and wealth of the organization.

Overall I believe that weighing all of the options it would be the right move to only acquire one of the company. This allows the parent company to still grow its capital and income. At the same time the company is eliminating some risk because it is not giving up as much shareholder stake as it would if it merged with both companies.