5 Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of .30. Its earnings this year will be $4 per share. Investors expect a 12% rate of return on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ 46.67 11.60 Price P/E ratio b. Find the price and P/E ratio of the firm if the plowback ratio is reduced to .20. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $40.00 10.00 Price P/E ratio