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The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta of 1,80, and plans to maintain indefinitely its traditional plowback

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The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta of 1,80, and plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $3.10 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bilis 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 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 momentally that it will immediately reduce its plowback ratio to 14. Find the intrinsic value of the stock. (Do not round Intermediate calculations, Round your answer to 2 decimal places.)

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