(Answered) Assume the following financial data for rembrandt paint

Finance

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?

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