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The market consensus is that Analog Electronic Corporation has an ROE of 6 % and a beta of 1 . 3 0 . It plans

The market consensus is that Analog Electronic Corporation has an ROE of 6% and a beta of 1.30. It plans to maintain indefinitely its traditional plowback ratio of 3/5. This year's earnings were $3.0 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.
a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Calculate P/E ratio
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.)

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