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 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.
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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 View more View Less
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