The market consensus is that Analog Electronic Corporation has an ROE$=9\%,$ a beta of $1\mathrm{.}25,$ and plans to maintain indefinitely its

traditional plowback ratio of $\frac{2}{3}.$ This year's earnings were $$3$ 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.$)$

Answer is complete and correct.

Price

$$,10\mathrm{.}60$

b$.$ Calculate the P$/$E ratio. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Answer is complete and correct.

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.$)$

Answer is complete but not entirely correct.