Vinnie's Motors has a market-to-book ratio of 3.4x . The book value per share is $34 and earnings per share are $1.36. Holding the market-to-book ratio and earnings per share constant, a $1 increase in the book value per share will:

Group of answer choices

1.decrease the price-earnings ratio.

2.increase the price-earnings ratio.

3.decrease the market price per share.

4.increase the return on equity.

5.decrease the EV multiple.