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:

Salesforce Training

Educational programs and initiatives aimed at improving the skills, knowledge, and effectiveness of a company's sales force.

Sales Managers

Individuals responsible for directing and overseeing a sales team to achieve sales targets and goals.

Proper Compensation

Fair remuneration or payment given to someone in exchange for work performed or damage incurred.

Motivated Sales Person

A salesperson driven by goals, incentives, and customer satisfaction, demonstrating high energy and commitment to achieving sales targets.