Return to question Problem 7-26 Stock Valuation (LO2) Start-Up Industries is a new firm that has raised $240 million by selling shares of stock. Management plans to earn a rate of return on equity of 25%, 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.) 3 Answer is complete but not entirely correct. Market-to-book 1,000 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.) Answer is complete but not entirely correct. Market-to-book 100.08