Gamma plc has made an offer of one of its shares for every three of Baker plc. Synergistic benefits from the merger would result in an increase in after-tax earnings of 4 million per annum. Extracts from the latest accounts of both companies are as follows:

	Gamma Plc	Baker Plc
Profit after tax, million	120	35
Number of shares outstanding, million	400	90
Market price of shares,	2.50	1.20

Assume that the price of Gamma Plcs shares rises by 0.50 after the merger and that Gamma issues new shares as consideration.

What will be the price-earnings ratio of the group?