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Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $ 2,100 $ 750 Shares outstanding 900 300

Consider the following premerger information about Firm A and Firm B:

Firm A Firm B
Total earnings $ 2,100 $ 750
Shares outstanding 900 300
Price per share $ 60 $ 12

Assume that Firm A acquires Firm B via an exchange of stock at a price of $13 for each share of B's stock. Both A and B have no debt outstanding.

What will the price-earnings ratio of the postmerger firm be if the market correctly analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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