Its cost of equity capital is 10 percent. Calculate the intrinsic price-to-book ratio. Suppose this firm announced that it was reducing its payout to...

Its cost of equity capital is 10 percent. A. Calculate the intrinsic price-to-book ratio. B. Suppose this firm announced that it was reducing its payout to 50 percent of earnings in the future. How would this affect your calculation of the price-tobook ratio?