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ABC Corporation plans to acquire LMN Company. RST has total earnings of P 500,000 while LMN has P200, 000. Number of shares outstanding is 100,000
ABC Corporation plans to acquire LMN Company. RST has total earnings of P 500,000 while LMN has P200, 000. Number of shares outstanding is 100,000 shares and 60,000 shares respectively. Their earnings per share are P4 and p5. Price earnings ratio is 8 and 6, respectively and both company shares have the same market price of P 30.
What is the new earnings per share of ABC?
Answer: P____
How much is the total earnings of ABC?
Answer: P_____
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