The market consensus is that Analog Electronic Corporation has an ROE = 12%, a beta of 1.55, and plans to maintain indefinitely its traditional plowback ratio of 2/5. This years earnings were $2.40 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 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

LEADING _____

TRAILING_____