The market consensus is that Analog Electronic Corporation has an ROE = 11% and a beta of 2.00. It plans to maintain indefinitely its traditional plowback ratio of 3/5. This year's earnings were $2.4 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 16%, 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.)

Price

$

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

	P/E ratio
Leading
Trailing

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.)

PVGO

$

d.	Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 2/5. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intrinsic value of the stock

$