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he market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 220 . It plans to maintain indefinitely its

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he market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 220 . It plans to maintain indefinitely its raditional plowback ratio of 3/5. This year's earnings were $4.4 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: . Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Price b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) . Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round ntermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. PVGO d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 2/5. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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