Let’s say that ParentCo has an EV of $100, equity value of $80, debt of $80, and cash of $60. It also has EBITDA of $10 and net income of $6. After significant due diligence, it decides to acquire TargetCo which has an EV of $40, equity value of $40, EBITDA of $4, and net income of $2. If the acquisition was entirely funded by debt, at a 10% coupon, what is the pro-forma EV/EBITDA and P/E ratio?