Acquiring the technology has a smaller impact on earnings

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Reference no: EM131615921

Systems has 6.5 billion shares outstanding and a share price of 18$. QA is considering developing a new networking product in house at a cost of 500$ million. Alternatevly, QA can acquire a firm that already has the technology for 900$ men worth (at the current price) of Quisco stock. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper?

Reference no: EM131615921

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