The market consensus is that Adobe Inc. (ADBE) has an ROE = 9%, a beta of 1.00, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This years earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming years market return is 14%, and T-bills currently offer a 6% return. Compute the following:

Find the price at which ADBE stock should sell [ Select ] ["10.60", "13.25", "11.20"]

Calculate the forward P/E ratio [ Select ] ["4.17", "3.13", "3.33"]

Calculate the present value of growth opportunities [ Select ] ["-8.18", "-8.15", "-9.46"]