Use the Information for the Question(s)below

question 27

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.
-If Martin pays no premium to acquire Luther,what will the earnings per share be after the merger?

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Prestigious Private School

An educational institution that is privately funded, highly regarded for its academic excellence, and often exclusive in its admissions.

Geographical Location

Refers to a specific physical point on the Earth's surface defined by coordinates, such as latitude and longitude.

Wealthy

Possessing a substantial amount of money, resources, or assets; affluence.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.