Question1: Find the implied growth duration of Kayleigh Industries given the following:
|
|
S P Industrials
|
Kayleigh Industries
|
|
P/E ratios
|
16
|
24
|
|
Expected growth
|
0.06
|
0.14
|
|
Dividend yield
|
0.04
|
0.02
|
Question2: Lauren Industries has an 18% yearly growth rate compared to the market rate of 8%. If the market multiple is 18, calculate P/E ratios for Lauren Industries, suppose its beta is 1.0 and you feel it can maintain its superior growth rate for
[A] The next ten (10) years.
[B] The next five (5) years.