Problem 5: What is the implied growth duration of Kayleigh Industries given following:
S&P Industrials Kayleigh Industries
P/E Ratios 16 24
Expected Growth 0.06 0.14
Dividend yield 0.04 0.02
Problem 7: You are given the following information about two computer software firms and the S&P Industrials:
Company A Company B Company C
P/E Ratios 30.0 27.0 18.0
Expected annual growth rate 0.18 0.15 0.07
Dividend yield 0.00 0.01 0.02
a. Compute the growth duration of each company stock relative to the S&P Industrials.
b. Compute the growth duration of Company A relative to Company B.
c. Given these growth duration, what determines your investment decision?
Recently Asked Questions
- Please refer to the attachment to answer this question. This question was created from CHAPTER 22 The Master Budget and Responsibility Accounting.
- Please refer to the attachment to answer this question. This question was created from (ACCT3020)(sum)midterm1.
- T/F: According to the constant growth model, the dividend yield is the same as the capital gains yield.