Problem 7-26 Valuing Businesses (LO3) Start-Up Industries is a new firm thot hos raised $350 minion by seling shares of stock. Management plans to earn a 16% rate of return on equity, which is more than the 10% rate of return ayailable on comparable-risk investments. Haif of all earnings will be reimvested in the firin. a. What will be Start Up's ratio of market value to book value? Note: Do not round intermediate calculetions. b. What will be Start-Up's ratio of market value to book value if the firm can eam only a rate of return of 10% on its investments? Note: Do not round intermediate calculations. Round your answer to 1 decimal place