Home / Questions / The market consensus is that Analog Electronic Corporation has an ROE = 24%, has a beta of

The market consensus is that Analog Electronic Corporation has an ROE = 24%, has a beta of

The market consensus is that Analog Electronic Corporation has an ROE = 24%, has a beta of 2.25, and plans to maintain indefinitely its traditional plowback ratio of 2/5. This year's earnings were $3.90 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 16%, and T-bills currently offer a 6% return.

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.)

 

Calculate the P/E ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

Calculate the present value of growth opportunities.

The market consensus is that Analog Electronic Corporation has an ROE = 24%, has a beta of 2.25, and plans to maintain indefinitely its traditional plowback ratio of 2/5. This year's earnings were $3.90 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 16%, and T-bills currently offer a 6% return.

Nov 30 2019 Read more Less More

Answer (UnSolved)

question Get solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form