C and D

The market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 1.50. It plans to maintain indefinitely its traditional plowback ratio of 4/5. This year's earnings were $2.1 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15% and T-bills currently offer a 5% return. Required: a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places) Poce $ 3.78 b. Calculate the P/E ratio (Do not round intermediate calculations, Round your answers to 2 decimal places) P/E ratio Leading 167 1.00 c. Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/5 Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)