P/E Ratios (Castles in the Sand) Castles in the Sand generates a return on equity of 7.00% (i.e., ROE) and maintains a plowback ratio of 37.30%. Its earnings at the end of this year will be $4.90 per share. Investors expect a 8.10% 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.) Price P/E ratio b. Find the price and P/E ratio of the firm, if the plowback ratio is reduced to 31.70%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E ratio