The market consensus is that Analog Electronic Corporation has an ROE = 15%, a beta of 1.90, and plans to maintain indefinitely its traditional plowback ratio of 1/5. This years earnings were $3.20 per share. The annual dividend was just paid. The consensus estimate of the coming years market return is 16%, and T-bills currently offer a 5% return.

a. Find the price at which Analog stock should sell.