Brookfield Constructions Ltd has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Brookfield Constructions is considering acquiring Archerfield Metals through a share swap. Archerfield Metals currently has 4 million shares outstanding and selling at $15 per share. Assuming this takeover does not create any additional economic values, if Brookfield Constructions pays no premium in this takeover, then Brookfields P/E ratio after the merger will be closet to

A.

2

B.

2.15

C.

2.50

D.

1.75

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