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 28.00

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 28.00 19.00
Expected annual growth rate 0.16 0.13 0.10
Dividend yield 0.00 0.01 0.02

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

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

___ years

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!