The market consensus is that Analog Electronic Corporation has an ROE = 10% and a beta of 1.50. It plans to maintain indefinitely its traditional plowback ratio of 1/5. This year's earnings were $2.1 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills 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.	Suppose your research convinces you Analog will announce momentarily that it will immediately change its plowback ratio to 4/5. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intrinsic value of the stock ???

$