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:

COC Bond Angle

Refers to the angle between two carbon atoms and an oxygen atom within certain molecular structures, important in chemical bonding.

Pi Bonds

Covalent chemical bonds where two lobes of one involved atomic orbital overlap two lobes of the other involved atomic orbital, forming a bond that is parallel to the bonding axis and allowing for electron sharing.

RU-486

A synthetic steroid used medically to induce abortion by blocking the action of progesterone.

Cis-trans Isomers

Stereoisomers that differ in the spatial arrangement of groups relative to a double bond, ring, or other structure leading to different physical and chemical properties.