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Suppose that you have the following data about two companies, Prodapt and Innovative Logic (IL). Earnings are in dollars, and share prices are in dollars

Suppose that you have the following data about two companies, Prodapt and Innovative Logic (IL). Earnings are in dollars, and share prices are in dollars and cents. For your convenience, I set up a template table. (See Example 11 in Lecture 2 for a similar table.) Activity Company Earnings Shares outstanding EPS Share price Market cap P/E Before merger Prodapt $1,683,163 200,000 $ $107.70 $ IL $1,348,085 200,000 $ $66.65 $ After merger ProLogic $ $ $ $ Suppose that the board of directors at Prodapt decides to acquire Innovative Logic by creating new shares of Prodapt common stock and exchanging one share of the new Prodapt stock for each old share of Innovative Logic common stock. The new company will be called ProLogic. Assume that the merger neither increases nor decreases earnings. Thus, for ProLogic, total earnings equals the sum of the earnings for the old Prodapt and Innovative Logic. Assume that traders will value ProLogic by simply adding the market caps for the original two separate companies. What is the price-to-earnings (P/E) ratio for the merged company, ProLogic? Enter your answer to two decimal places of accuracy

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