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i cant figure out any parts to this problem The market consensus is that Analog Electronic Corporation has an ROE -23%, a beta of 2.20,
i cant figure out any parts to this problem
The market consensus is that Analog Electronic Corporation has an ROE -23%, a beta of 2.20, and plans to maintain indefinitely its traditional plowback ratio of 2/5. This year's earnings were $3.80 per share. The annual dividend was just pald. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return o. Find the price at which Analog stock should sell. (Do not round intermediate calculations, Round your answer to 2 decimal places.) Prico b. Calculate the P/E tatlo (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E Ratio Leading Tring 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 3/5. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value Step by Step Solution
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