The market consensus is that Analog Electronic Corporation has an ROE$=9\%,$ a beta of $2\mathrm{.}05,$ and plans to maintain indefinitely its

raditional plowback ratio of $\frac{2}{3}.$ This year's earnings were $$3\mathrm{.}50$ per share. The annual dividend was just paid. The consensus

estimate of the coming year's market return is $12\%,$ and T$-$bills currently offer a $6\%$ return.

a$.$ Find the price at which Analog stock should sell. $($Do not round intermediate calculations. Round your answer to $2$ decimal

places.$)$

Answer is complete and correct.

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

Answer is complete and correct.

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.$)$

Answer is complete and correct.

PVGO

$5,(10\mathrm{.}22)$

d$.$ Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to $\frac{1}{3}.$

Find the intrinsic value of the stock. $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Answer is not complete.