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The market consensus is that Analog Electronic Corporation has an ROE-10% and a beta of 1.50. It plans to maintain indefinitely its traditional plowback ratio

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The market consensus is that Analog Electronic Corporation has an ROE-10% and a beta of 1.50. It plans to maintain indefinitely its traditional plowback ratio of 4/5. This years earnings were $2.1 per share. The annual dividend was ust paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) Price b. Calculate the P/E ratio. (Do not round Intermedlate calculations. Round your answers to 2 declmal 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 1/5. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) ntrinsic value of the stock

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