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The market consensus is that Analog Electronic Corporation has an ROE =13%, a beta of 2.00, and plans to maIntain Indefinitely its traditional plowback ratio

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The market consensus is that Analog Electronic Corporation has an ROE =13%, a beta of 2.00, and plans to maIntain Indefinitely its traditional plowback ratio of 3/5. This year's earnings were $3.40 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 11%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) b. Calculate the P/E ratio. (Do not round Intermedlate calculations. Round your answers to 2 decimal places.) c. Calculate the present value of growth opportunitles. (Negative amount should be Indlcated by a minus sign. Do not round Intermedlate calculatlons. Round your answer to 2 decimal places.) d. Suppose your research convinces you Analog will announce momentarlly that it will Immedlately reduce Its plowback ratio to 2/5. Find the Intrinsic value of the stock. (Do not round Intermedlate calculations. Round your answer to 2 declmal places.)

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