Assume the following financial data for rembrandt paint

Question

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?