Assume that your company has 2,000,000 shares of common stock outstanding. The company also has $30,000,000 of perpetual debt that has an annual interest rate of 10.0 percent. The company's EBIT is currently $35,000,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year; its growth is zero, its earnings per share equals its dividends pel share, and the company's tax rate is 40. The company is considering issuing an additional $40,000,000 worth of perpetual bonds (at par) and using the proceeds for a stock repurchase. The original debt will not be retired and will continue to pay interest at a 10.0 percent rate, but the new debt (because of the higher financial risk) will pay an interest rate of 12.0 percent; you may assume that the market will price both issues using a required rate of return of 12.0 percent). The risk-free rate in the economy is 4 percent, and the market risk! premium is 10 percent. The company's beta is currently 1.20, but its investment bankers estimate that the company's beta would rise to 1.35 if it proceeds with the recapitalization. Assume that the market does not anticipate an increase in value when the firm announces that it will recapitalize, so that the firm will repurchase all shares at the current price per share. Given this information, determine what the price to earnings (P/E) ratio will be after the recapitalization is completed and the price of the stock moves to its new equilibrium level. Enter your answer rounded to 2 decimal places, with no other punctuation. For example, if your answer is "2.226X", enter "2.27