Question: Hi, please help me with this question. Be clear with explanation if possible because I need to present this to my class. Thank you!!! Lauren
Hi, please help me with this question. Be clear with explanation if possible because I need to present this to my class. Thank you!!!
Lauren Entertainment, Inc. has an 18 percent annual growth rate compared to the market rate of 8 percent. If the market multiple is 18, determine P/E ratios for ratios for Lauren Entertainment, Inc., assuming its beta is 1.0 and you feel it can maintain its superior growth rate for:
a. The next 10 years.
b. The next 5 years.
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