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The market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 1.85 . It plans to maintain indefinitely its

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The market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 1.85 . It plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $4.0 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. o. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimol places.) c. Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your onswer to 2 decimal places.) d. Suppose your research convinces you Arialog will announce momentarily that it will immediately reduce its plowback ratio to 1/4 Find the intrinsic value of the stock (Do not round intermediate calculotions. Round your answer to 2 decimal ploces.)

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