1. An analyst gathered the following information for a U.S. company whose common stock is currently priced at $40 per share:

Because of the severe cyclical contraction that occurred in 2008 for a major segment of the company's operations, the analyst has decided to normalize earnings using the 2004-2007 period, if the analyst also decides to account for changes in the company's size over time, the most appropriate estimate of the company's 2008 price/earnings (P/E) ratio based on normalized earnings is: