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The market consensus is that Analog Electronic Corporation has an ROE of 8% and a beta of 1.40. It plans to maintain indefinitely its traditional

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The market consensus is that Analog Electronic Corporation has an ROE of 8% and a beta of 1.40. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.0 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 $ 7.72 b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E ratio 2.58 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

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