C LO 5 Start-Up Industries is a new firm that has raised $230 million by selling shares of stock Management plans to ear

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C Lo 5 Start Up Industries Is A New Firm That Has Raised 230 Million By Selling Shares Of Stock Management Plans To Ear 1 (19.39 KiB) Viewed 62 times

C LO 5 Start-Up Industries is a new firm that has raised $230 million by selling shares of stock Management plans to earn a 20% 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 10 points a. What will be Start-Up's ratio of market value to book value? (Do not round Intermediate calculations.) Market-to-book ratio Skipped Boos P References 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.) Market-to-book ratio