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can you please do all 4 parts The market consensus is that Analog Electronic Corporation has an ROE=9% and a beta of 1.65 and plans
can you please do all 4 parts
The market consensus is that Analog Electronic Corporation has an ROE=9% and a beta of 1.65 and plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.20 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 11%, and T-bills currently offer a 6% return. Required: a. Find the price at which Analog stock should sell. b. Calculate the P/E ratio. c. Calculate the present value of growth opportunities. d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock. Complete this question by entering your answers in the tabs below. Find the price at which Analog stock should sell. Note: Do not round intermediate calculations. Round your answer to 2 decimal places Step by Step Solution
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