Use the Information for the Question(s) Below

question 55

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.
-What are the possible managerial motives to merge?

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Definitions:

Marriage

A culturally sanctioned union between two or more people that establishes certain rights and obligations between the people, between them and their children, and between them and their in-laws. Such marriage rights and obligations most often include, but are not limited to, sex, labor, property, child rearing, exchange, and status.

Sharia Law

A religious legal system governing the members of the Islamic faith.

Sexual Relations

Interactions of a sexual nature between individuals, encompassing a range of behaviors and relationships.

Outside Marriage

Relationships or sexual activities that occur outside the bounds of a legally or culturally recognized marriage.