The market consensus is that Analog Electronic Corporation has an ROE of $10\%$ and a beta of $2\mathrm{.}20.$ It plans to maintain indefinitely its

traditional plowback ratio of $\frac{3}{5}.$ This year's earnings were $$4\mathrm{.}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:

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.

b$.$ Calculate the P$/$E ratio. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Answer is not complete.

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.

d$.$ Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to $\frac{2}{5}.$

Find the intrinsic value of the stock. $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Answer is complete and correct.