Rembrandt paint company and picasso art supplies

Assignment Help Finance Basics
Reference no: EM131757996

Assume the following financial data for Rembrandt Paint Company and Picasso Art Supplies:

                                                                                    Rembrandt                        Picasso

Total Earnings                                                                   $504,000                             $738,000

Number of shares of stock outstanding                  140,000                              410,000

EPS ($/share)                                                                              3.6                                       1.8

P/E ratio                                                                                        10                                        10

Market Price per share ($/share)                                        36                                        36

If all the shares of Rembrandt are exchanged for those of Picasso on a share for share basis, what will be postmerger EPS for Picasso?

Reference no: EM131757996

Questions Cloud

Taxes and after tax profit : a. If he sells his interest, what will be the value for before-tax profit, taxes and after tax profit?
What is effective communication : What is your analysis of the blog?? What is effective communication? How is it important in the workplace? Why does a good listener make a good communicator?
Determine which of the operating segments : Determine which of the operating segments are reportable based on
Probability frieda assigns to contracting the disease : Frieda has been exposed to a deadly disease. The probability that she will contract the disease is very small, but if she were to contract the disease.
Rembrandt paint company and picasso art supplies : Assume the following financial data for Rembrandt Paint Company and Picasso Art Supplies:
Compute the npv : Kent will provide $470,000 per year in cash flow (after tax income plus depreciation) for the next 25 years. The discount rate is 13%.
Compare any differences that you might have found : Find one other outside source from either local media or elsewhere that also addresses some of the information found in the Venue Report.
Control water temperature at different levels : Coral reefs How sensitive to changes in water temperature are coral reefs? To find out, measure the growth of corals in aquariums where the water temperature.
Financing for use in the wacc calculation : Submit your answer as a percentage and round to two decimal places (Ex. 0.00%) Please give step by step answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd