The market consensus is that Analog Electronic Corporation has an ROE$=11\%,$ a beta of $1\mathrm{.}50,$ and plans to maintain indefinitely its

traditional plowback ratio of $\frac{1}{5}.$ This year's earnings were $$250$ 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 $5\%$ retum.

a$.$ Find the price at which Analog stock should sell. $($Do not round Intermedlate calculatlons. Round your answer to $2$ declmal

pleces.$)$

Answer is complete and correct.

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

Answer is complete and correct.

c$.$ Calculate the present value of growth opportunities. $($Negatlve amount should be Indlcated by a minus slgn$.$ Do not round

Intermedlate colculatlons. Round your answer to $2$ decimal places.$)$

Answer is complete and correct.

d$.$ Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to $\frac{4}{5}.$

Find the intrinsic value of the stock. $($Do not round Intermedlate colculatlons. Round your answer to $2$ declmal places.$)$

Intrinsic value