Consider two corporations that both have earnings of $5 per share. The first firm, UpperCanada Enterprises, is a mature company with few growth opportunities. It has 1 million shares currently outstanding priced at $60 per share. The second company, LowerCanada Corporation, is a young company with much more lucrative growth opportunities. Consequently, it has a higher value: Although it has the same number of shares oustanding, its stock price is $100 per share. Assume LowerCanada acquires Upper-Canada using its own stock and the takeover adds no value.

Question 1: Given the above information, what are LowerCanada's earnings per share after the takeover?

Question 2: Given the above information, what is LowerCanada's P/E ratio after the takeover?