Question
Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies: Rembrandt Paint Co. Picasso Art Supplies Total earnings $ 522,000 $ 800,000
Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies:
| Rembrandt Paint Co. | Picasso Art Supplies | ||||
| Total earnings | $ | 522,000 | $ | 800,000 | |
| Number of shares of stock outstanding | 145,000 | 400,000 | |||
| Earnings per share | $ | 3.6 | $ | 2.0 | |
| Price-earnings ratio (P/E) | 15 | 27 | |||
| Market price per share | $ | 54 | $ | 54 | |
If all the shares of Rembrandt Paint Co. are exchanged for those of Picasso Art Supplies on a share-for-share basis, what will postmerger earnings per share be for Picasso Art Supplies? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Sports Finance And Management Real Estate Entertainment And The Remaking Of The Business
Authors: Jason A. Winfree, Mark S. Rosentraub, Brian M Mills
1st Edition
1439844712, 9781439844717
