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?

Total earnings Number of shares of stock outstanding Earnings per share Price-earnings ratio (P/E) Market price per share Rembrandt Paint Co. $ 522,000 145,000 $ 69 3.60 15 54 Picasso Art Supplies $ 800,000 400,000 $ 2 27 54