2800c6cbedbfcfa6ff503a3acee55efb_00e6cb8790bd685d62743b57ba6c590f - 8 The market consensus is that Analog Electronic Corporation has an ROE = 10 has a

2800c6cbedbfcfa6ff503a3acee55efb_00e6cb8790bd685d62743b57ba6c590f

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8. The market consensus is that Analog Electronic Corporation has an ROE = 10%, has a beta of 1.40, and plans to maintain indefinitely its traditional plowback ratio of 2/4. This year's earnings were $2.70 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 13%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $ b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E Ratio Leading Trailing 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. Omit the "$" sign in your response.) PVGO $ 10. Consider the following information regarding the performance of a money manager in a recent month.
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