A corporation has a current P/E ratio of 2.8 and a current P/B ratio of 1.4. The company has a cost of equity of 50%, a realized rate of return on equity, ROE, of 50%, and an equity reinvestment rate of 80%. The company announces that it will decrease its equity reinvestment rate to 50% effective immediately.

(a) (5 points) Find the new P/E ratio of the company following its reinvestment policy change.

(b) (5 points) Find the new P/B ratio of the company following its reinvestment policy change.

(c) (5 points) Find the new PEG ratio of the company following its reinvestment policy change.