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 32.00 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 | 32.00 | 28.00 | 16.00 | |||
| Expected annual growth rate | 0.17 | 0.14 | 0.06 | |||
| Dividend yield | 0.00 | 0.02 | 0.03 | |||
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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
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Compute the growth duration of Company A relative to Company B. Do not round intermediate calculations. Round your answer to two decimal places.
year

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 32.00 28.00 16.00 Expected annual growth rate 0.17 0.14 0.06 Dividend yield 0.00 0.02 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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