Please answer this question and walk through it step-by-step:

The following data on a merger are given: Firm AB Price per share Total earnings Shares outstanding Total value Firm A $ 100 $ 500 100 $ 10,000 Firm B $ 10 $ 300 40 $ 400 $ 11,000 Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the post-merger P/E ratio, assuming that cash is used in the acquisition and the merger has no immediate effect on total firm income. A) 12.75 B) 6.25 C) 13.75 D) 17.85