Rembrandt paint company and picasso art supplies

Assignment Help Finance Basics
Reference no: EM131758019

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: EM131758019

Questions Cloud

What will be the value for before-tax profit : a. If he sells his interest, what will be the value for before-tax profit, taxes and after tax profit?
How would the correlation change : If heights were measured in centimeters rather than inches, how would the correlation change? (There are 2.54 centimeters in an inch.)
Financial data for noble corporation : Assume the following financial data for Noble Corporation and Barnes Enterprises:
The major advantage of receiving monthly bank statements : The major advantage of receiving monthly bank statements
Rembrandt paint company and picasso art supplies : Assume the following financial data for Rembrandt Paint Company and Picasso Art Supplies:
Explain why the correlation has the value : Strong association but no correlation The gas mileage of an automobile first increases and then decreases as the speed increases.
How you would mine data based on the three categories : In a 1-2 page paper explain the difference in how you would mine data based on the 3 categories; Prediction, Clustering, and Association.
Clark corporation desires to expand : The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises of $3.6 million. Kent has an $870,000 tax loss carryforward
Calculate the correlation for the data by hand : What is responsible for reducing the correlation to the value in part (b) despite a strong straight-line relationship between x and y in most.

Reviews

Write a Review

Finance Basics Questions & Answers

  Differnce bewteen heavy lift surcharges and long lift

difference betweeen heavy lift surcharges and long lift surcharges. define heavy lift surcharge and long lift

  Find the unemployment rate

Bureau of Labor Statistics reported that in May 2007 total labor force was 152,762,000 of a possible 231,480,000 working age adults.

  What is the required rate of return on this stock

The company just paid a $1.48 annual dividend and announced plans to pay $1.54 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?

  Effects of cca depreciation

The firm's cost of equity is 16% and its pre-tax cost of debt is 8%. The flotation costs of debt and equity are 2% and 8%, respectively. Assume the firm's tax rate is 34% and ignore the effects of CCA depreciation.

  Short run may conflict with maximization of owners

The goal of maximizing profits in the short run may conflict with maximization of owners' wealth. True or False?

  What amount would be saved on current taxes

Betty Sims has $30,000 of adjusted gross income and $5,000 of medical expenses. She will be itemizing her tax deductions this year.

  What is the functional aggregation paradigm

Discuss the three challenges logistics faces as it manages on a process, rather than a functional, basis. Describe each challenge and give an example of how it may be overcome.

  Demonstrate the growth

Demonstrate the growth of a $250 monthly contribution for 40 years earning 9 percent APR. (LG5-2) Use an on line savings calculator to help you get this amount.

  Compute the additional investment in accounts receivable

1) Compute the incremental income after taxes that would result from these projections: 2) Compute the incremental Return on Sales if these new credit customers are accepted: If the receivable turnover ratio is expected to be 3 to 1 and no other asse..

  Describe the role of each function such as finance

Describe the role of each function, such as finance, accounting, and marketing in the hospitality industry. Select one of the three functions and research careers within this area.

  What is richmond corporation total net cash flow

What is Richmond Corporation's total net cash flow from the current lockbox system available to meet payroll?

  What was the operating cash flow for 2010

If no new debt was issued during the year, what was the cash flow to creditors? What was the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in (a) through (d).

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