Use the Information for the Question(s)below

question 30

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.
-Assume that Martin pays no premium to acquire Luther.Calculate Martin's price-earnings (P/E)ratio both pre- and post-merger.

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Definitions:

Over Thirty

Refers to individuals or demographic groups that are over the age of thirty years.

Criminal Subcultures

Groups within a society that develop unique sets of norms and values that revolve around criminal activities.

Remorseful

Being remorseful entails feeling deep regret or guilt for a wrong committed, often accompanied by a desire to make amends or seek forgiveness.

Conformists

Individuals who align their behavior or beliefs with the norms and standards of a group or society.