Business, 30.06.2019 02:00 randall10

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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