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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.

Abhinav 30-Nov-2019

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