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 28.00 25.00
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 28.00 25.00 18.00 Expected annual growth rate 0.18 0.15 0.06 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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