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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?
Quarterly Earnings
A company's profit or earnings report issued every quarter, reflecting its financial performance over a three-month period.
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, typically focusing on environmental, economic, and social pillars.
Volatile World
A term describing an environment characterized by rapid and unpredictable changes, often affecting global economies, politics, and societies.
Hedge Fund
A hedge fund is an investment fund that pools capital from accredited investors or institutions and employs a wide range of strategies to earn active returns for their investors.
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