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The market consensus is that Analog Electronic Corporation has an ROE of 11% and a beta of 2.25. It plans to maintain indefinitely its traditional

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The market consensus is that Analog Electronic Corporation has an ROE of 11% and a beta of 2.25. It plans to maintain indefinitely its traditional plowback ratio of 3/5. This year's earnings were $4.7 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, 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.) Price b. Calculate the P/E ratio (Do not round intermediate calculations. Round your answers to 2 decimal places) PIE ratio Leading NH TMC 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.) Iris value of the stock

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