The market consensus is that Analog Electronic Corporation has an ROE = 14%, has a beta of 1.85, and plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $3.10 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 6% return.

a. find the price at which Analog stock should sell

Price = $......

b. calculate P/E ratio

Leading P/E ratio = .....

Trailing P/E ratio = .....

c. Calculate the present value of growth opportunities

PVGO = $.....