10 19 The shareholders of a target firm have voted in favor of a buyout offer from an acquiring firm. Information about each firm is given in the following table. Item Target Firm Acquiring Firm Price-camings ratio Shares outstanding 100,000 210,000 Earnings $270,000 $714,000 The shareholders of the target firm will receive 1 share of stock in the merged firm for every 4 shares they hold in the target firm. There is no synergy for this merger. What will the PE ratio of merged firm be if the NPV of the nequisition is zero? Enter your answer in the box shown below as a number with 2 digits to the right of the decimal point, Your Answer: 4.69