Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies: ...
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Finance
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.)
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