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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.
Imperative Statement
An imperative statement is a command or instruction given in direct and clear terms, often used to direct action.
Pronoun Case
The grammatical category of pronouns based on their function in a sentence, including subject, object, and possessive cases.
Incorrect Case
The use of a wrong form of a noun, pronoun, or adjective in a sentence, based on grammatical rules of languages that have case distinctions.
Dangling Modifier
A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusion or a humorous misinterpretation.
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