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PLEASE ANSWER PART C The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 2.10. It plans to
PLEASE ANSWER PART C
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 2.10. It plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $4.1 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 13%, and T-bills currently offer a 5% return. a. 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 S 7.24 b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct. Leading Trailing P/E ratio 1.65 1.76 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.) Answer is complete but not entirely correct. PVGO S (34.01)Step by Step Solution
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