Consensus estimate of the coming year market return

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Reference no: EM131352827

The market consensus is that Analog Electronic Corporation has an ROE =9% and a beta of 1.80. It plans to maintain indefinitely its traditional plowback ratio of 2/4. This year's earnings were $3.2 per share. The annual divided was just paid. The consensus estimate of the coming year's market return is 14%, and T- bills currently ofer a 5% return.

Calculate the present value of growth opportunities (PVGO).

Reference no: EM131352827

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