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Rearden Metal has earnings per share of $3. It has 20 million shares outstanding and is trading at $10 per share. Rearden Metal is thinking

Rearden Metal has earnings per share of $3. It has 20 million shares outstanding and is trading at $10

per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.00, 10

million shares outstanding, and a price per share of $10. Rearden Metal will pay for Associated Steel by

issuing new shares. There are no expected synergies from the transaction. If Rearden pays no premium to buy Associated Steel, then what is Rearden's price-earnings ratio after the takeover?

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