Start-Up Industries is a new firm that has raised $200 million by selling shares of stock. Management plans to earn a 24% rate of return on equity, which is more than the 15% rate of return available on comparable-risk investments. Half of all earnings will be reinvested in the firm.

a.What will be Start-Up's ratio of market value to book value?(Do not round intermediate calculations.)

b.What will be Start-Up's ratio of market value to book value if the firm can earn only a rate of return of 10% on its investments?(Do not round intermediate calculations. Round your answer to 1 decimal place.)