The market consensus is that Analog Electronic Corporation has an ROE = 10%, a beta of 1.40, and plans to maintain indefinitely its traditional plowback ratio of 1/4. This years earnings were $2.70 per share. The annual dividend was just paid. The consensus estimate of the coming years market return is 13%, 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 ___