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:

Original Workbook

In the context of spreadsheet software, it refers to the primary file in which data and calculations are initially created and stored.

Primary Key Field

A unique identifier for each record in a database table, ensuring that no two rows have the same value in this field.

CustomerID

A unique identifier assigned to each customer in a database, allowing businesses to track and manage customer information effectively.

CustomerNumber

A unique identifier assigned to customers for identification and record-keeping purposes.