The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta...
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The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta of 2.15, and plans to maintain indefinitely its traditional plowback ratio of 1/4. This year's earnings were $3.70 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Price 19.10 b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. P/E Ratio Leading Trailing 5.00 5.168 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 (245)
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