Question: You are given the following information about two computer software firms and the S&P Industrials: Company A Company B S&P Industrials P/E ratio 30.00 26.00

You are given the following information about two computer software firms and the S&P Industrials:

Company A Company B S&P Industrials

P/E ratio 30.00 26.00 17.00

Expected annual growth rate 0.18 0.15 0.08

Dividend yield 0.00 0.01 0.03

A). Compute the growth duration of each company stock relative to the S&P Industrials. Do not round intermediate calculations. Round your answers to two decimal places.

Company A: ____________ years

Company B: ____________ years

B). Compute the growth duration of Company A relative to Company B. Do not round intermediate calculations. Round your answer to two decimal places.

_________ years

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