Company analysis and stock valuation question

Exhibit 14.2

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Modular Industries currently has a 16% annual growth rate while the market average is 6 percent. The market multiple is 10.

53. Refer to Exhibit 14.2. Determine the justified P/E ratio for Modular Industries assuming Modular can maintain its superior growth rate for the next 5 years.

a.	6.4
b.	13.1
c.	16.5
d.	23.8
e.	15.7

54. Refer to Exhibit 14.2. Determine the P/E ratio for Modular Industries assuming Modular can maintain its superior growth rate for the next 8 years.

a.	6.4
b.	20.5
c.	16.5
d.	23.8
e.	29.5