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The market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 150 lt plans to maintain indefinitely its traditional

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The market consensus is that Analog Electronic Corporation has an ROE of 10% and a beta of 150 lt plans to maintain indefinitely its traditional plowback ratio of 4/5. This year's earnings were $21 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. Calculate the P/E ratio (Do not round Intermediate calculations. Round your answers to 2 decimal places.) PE ratio Landing Trening 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.) 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 $ 756 d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ridtio to 15. Find the intrinsic value of the stock (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intimnie valise of the stock

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