Oxford Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Oxford Metal is thinking of buying Memphis Stee which has eamings per share of $1.25, 4...

Extracted text: Oxford Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Oxford Metal is thinking of buying Memphis Stee which has eamings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Oxford Metal will pay for Memphis Steel by issuing new shares There are no expected synergies from the transaction. If Oxford pays no premium to buy Memphis Steel, then Oxfords price-eamings ratio ater the merger will be closest to: O A. 8.7 B. 7.8 OC. 10.0 O D. 10.42 OE 120