Ashley Homebuilding is about to go public. The investment firm of Blake, Webber, and Company is attempting to price the issue. The home building industry generally trades at a 22 percent discount below the P/E ratio on the S\&P/TSX Composite Index. Assume that index currently has a P/E ratio of 25 . The firm can be compared to the home building industry as follows: Assume, in assessing the initial P/E ratio, the investment dealer will first determine the appropriate industry P/E based on the S\&P/TSX Composite Index. Then a half point will be added to the P/E ratio for each case in which Ashley Homebuilding is superior to the industry norm, and a half point will be deducted for an inferior comparison. What should the initial P/E be for the firm? (Round the final answer to 2 decimal places.)