Use the Information for the Question(s)below

question 27

Essay

Use the information for the question(s)below.
Martin Manufacturing has earnings per share (EPS)of $3.00,5 million shares outstanding,and a share price of $32.Martin is considering buying Luther Industries,which has earnings per share of $2.50,2 million shares outstanding,and a share price of $20.Martin will pay for Luther by issuing new shares.There are no expected synergies from the transaction.
-If Martin pays no premium to acquire Luther,what will the earnings per share be after the merger?

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Definitions:

Personality Variables

Traits or characteristics that vary across individuals and can influence behavior and attitudes.

Predicted

Refers to the anticipated outcome or results based on observation, theory, or previous data.

Motivations

Motivations are the underlying forces, desires, or needs that drive individuals to act in certain ways and pursue goals.

Goals

Objectives or outcomes that an individual or organization is trying to achieve.