The market consensus is that Analog Electronic Corporation has an ROE = 10% and a beta of 2.15. It plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $3.9 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 16%, 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.)

Price:____$

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

P/E ratio Leading: ______

P/E ratio 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 1/4. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intrinsic value of the stock:________$