question archive Assume the following financial data for Rembrandt Paint Co
Assume the following financial data for Rembrandt Paint Co
Subject:FinancePrice:2.86 Bought3
Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies:
Rembrandt Paint Co. Picasso Art Supplies Total earnings $ 576,000 $ 820,000
Number of shares of stock outstanding 160,000 410,000
Earnings per share $ 3.60 $ 2
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.)
