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.

---

Definitions:

Legally Liable

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Human Resources Management Systems

Integrated systems designed to help organizations manage and optimize their human resources processes, from recruiting and hiring to performance management.

HR Professionals

Individuals specializing in managing and advising on recruitment, employment law, compensation, employee relations, and organizational development within a company or organization.

Predominant Use

The primary application or most frequent usage of an object, concept, or process within a particular context or environment.