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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 and a beta of It plans to maintain indefinitely its traditional plowback ratio of This year's earnings were $ per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is and Tbills currently offer a return.
a Find the price at which Analog stock should sell. Do not round intermediate calculations. Round your answer to decimal places.
b Calculate PE 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 decimal places.
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