Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies: Rembrandt Paint Co. Picasso Art Supplies $1,100,000 $ 525,000 550,000 150,000 3.50 12 42 Total earnings Number of shares of stock outstanding Earnings per share Price-earnings ratio (P/E) Market price per share $ Postmerger earnings per share $ $ 2 21 42 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.)

Assume the following financial data for Rembrandt Paint Co. and Picasso Art Supplies: If all the shares of Rembrandt Paint Co. are exchanged for those of Picasso Art Supplies on a share-forshare basis, what will postmerger earnings per share be for Picasso Art Supplies? (Do not round intermediate calculations. Round your answer to 2 decimal places.)