The market consensus is that Analog Electronic Corporation has an ROE = 11%, a beta of...

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The market consensus is that Analog Electronic Corporation hasan ROE = 11%, a beta of 1.45, and plans to maintain indefinitelyits traditional plowback ratio of 3/4. This year’s earnings were$2.60 per share. The annual dividend was just paid. The consensusestimate of the coming year’s market return is 14%, and T-billscurrently offer a 6% return.
a. Find the price at which Analog stock shouldsell. (Do not round intermediate calculations. Round youranswer to 2 decimal places.)
Price=
b. Calculate the P/E ratio. (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)
Leading:
Trailing:
c. Calculate the present value of growthopportunities. (Negative amount should be indicated by aminus sign. Do not round intermediate calculations. Round youranswer to 2 decimal places.)
PVGO=
d. Suppose your research convinces you Analogwill announce momentarily that it will immediately change itsplowback ratio to 1/4. Find the intrinsic value of the stock.(Do not round intermediate calculations. Round your answerto 2 decimal places.)
Intrinsic value=

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The market consensus is that Analog Electronic Corporation hasan ROE = 11%, a beta of 1.45, and plans to maintain indefinitelyits traditional plowback ratio of 3/4. This year’s earnings were$2.60 per share. The annual dividend was just paid. The consensusestimate of the coming year’s market return is 14%, and T-billscurrently offer a 6% return.a. Find the price at which Analog stock shouldsell. (Do not round intermediate calculations. Round youranswer to 2 decimal places.)Price=b. Calculate the P/E ratio. (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)Leading:Trailing:c. Calculate the present value of growthopportunities. (Negative amount should be indicated by aminus sign. Do not round intermediate calculations. Round youranswer to 2 decimal places.)PVGO=d. Suppose your research convinces you Analogwill announce momentarily that it will immediately change itsplowback ratio to 1/4. Find the intrinsic value of the stock.(Do not round intermediate calculations. Round your answerto 2 decimal places.)Intrinsic value=