The market consensus is that analog electronic corporation has an roe = 9%, has a beta of 1.30, and plans to maintain indefinitely its traditional plowback ratio of 1/3. this year's earnings were $2.90 per share. the annual dividend was just paid. the consensus estimate of the coming year's market return is 11%, and t-bills currently offer a 5% return.
find the price at which analog stock should sell.

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.b. use cash to repurchase some of the company's own stock.c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash.e. use cash to increase inventory holdings.