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
  1. 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

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

    yearYou are given the following information about two computer software firms and

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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