Problem $9-10$

Lauren Entertainment, Inc., has an $16$ percent annual growth rate compared

to the market rate of $8$ percent. If the market multiple is $20,$ determine P$/$E

ratios for Lauren Entertainment, Inc., assuming its dividend yield is zero, its

beta is $1\mathrm{.}00$ and you feel it can maintain its superior growth rate for:

a$.$ the next $14$ years. Do not round intermediate calculations. Round your

answer to two decimal places.

b$.$ the next $7$ years. Do not round intermediate calculations. Round your

answer to two decimal places.