The market consensus is that analog electronic corporation has an roe = 9% and a beta of 2.05. it plans to maintain indefinitely its traditional plowback ratio of 1/3. this year's earnings were $3.8 per share. the annual dividend was just paid. the consensus estimate of the coming year's market return is 15%, 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.)
c. calculate the present value of growth opportunities. (negative amount should be indicated by a minus sign. do not round intermediate calculations. round your answer to 2 decimal places.)
d. suppose your research convinces you analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. find the intrinsic value of the stock. (do not round intermediate calculations. round your answer to 2 decimal places.)

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Two firms, a and b, each currently emit 100 tons of chemicals into the air. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. the government gives each firm 40 pollution permits, which it can either use or sell to the other firm. it costs firm a $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs firm b $100 for each ton of pollution that it eliminates before it is emitted into the air. after the two firms buy or sell pollution permits from each other, we would expect that firm a will emit a. 100 fewer tons of pollution into the air, and firm b will emit 20 fewer tons of pollution into the air. b. 20 more tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air. c. 50 fewer tons of pollution into the air, and firm b will emit 50 fewer tons of pollution into the air. d. 20 fewer tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air.

What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt? a) deflation b) low inflation c) high inflation d) not enough information given