The market consensus is that Analog Electronic Corporation has an ROE $=9\%$ and a

beta of $2\mathrm{.}10.$ It plans to maintain indefinitely its traditional plowback ratio of $\frac{1}{3}.$ This

year's earnings were $$4\mathrm{.}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.$)$

b$.$ Suppose your research convinces you Analog will announce momentarily that it will

immediately change its plowback ratio to $\frac{2}{3}.$ Find the intrinsic value of the stock. $($Do

not round intermediate calculations. Round your answer to $2$ decimal places.$)$