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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