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The market consensus is that Analog Electronic Corporation has an ROE of 11% and a beta...

The market consensus is that Analog Electronic Corporation has an ROE of 11% and a beta of 1.90. It plans to maintain indefinitely its traditional plowback ratio of 3/5. This year's earnings were $2.9 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 5% return.

a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)



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

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