The market consensus is that Analog Electronic Corporation has an ROE-8% and a beta of 1.35. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.2 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 S 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 momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value of the stock References eBook & Resources Learning Objective: 13-03 Assess the growth prospects of a firm, and relate growth opportunities to the P/E ratio. Worksheet