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The market consensus is that Analog Electronic Corporation has an ROE = 10%, a beta of 1.35, and plans to maintain indefinitely its traditional plowback

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The market consensus is that Analog Electronic Corporation has an ROE = 10%, a beta of 1.35, and plans to maintain indefinitely its traditional plowback ratio of 1/4. This year's earnings were $2.80 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 12%, and T-bills currently offer a 6% return. Cind the nurinn at which Annontonlechuld all in aliada alasan D... 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.) Answer is complete but not entirely correct. PVGO s (130) d. Suppose your research convinces you Analog will announce momentarily that it will immediately change its plowback ratio to 3/4. Find the intrinsic value of the stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value

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