FOUND.OF FINANCIAL MANAGEMENT-ACCESS
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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Chapter 20, Problem 5P

a.

Summary Introduction

To calculate: The post-merger earnings per share of Picasso Art Supplies.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company. 

b.

Summary Introduction

To explain: The change in the earnings per share of Picasso Art Supplies.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company. 

c.

Summary Introduction

To explain: Whether this merger benefited Picasso Art Supplies or not.

Introduction:

Merger:

An agreement between two existing companies that combines them to form one single company is termed as a merger. This is done for the expansion of business, share in the market and value of shareholders.

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Suppose that you are a U.S.-based importer of goods from the United Kingdom. You expect the value of the pound to increase against the U.S. dollar over the next 30 days. You will be making payment on a shipment of imported goods in 30 days and want to hedge your currency exposure. The U.S. risk-free rate is 5.5 percent, and the U.K. risk-free rate is 4.5 percent. These rates are expected to remain unchanged over the next month. The current spot rate is $1.90.  1.Move forward 10 days. The spot rate is $1.93. Interest rates are unchanged. Calculate the value of your forward position. Do not round intermediate calculations. Round your answer to 4 decimal places.
Don't solve. I mistakenly submitted blurr image please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.
The  image is blurr please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.
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