Question
Problem 9-11 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
Problem 9-11
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 | 27.00 | 23.00 | 17.00 | |||
| Expected annual growth rate | 0.16 | 0.14 | 0.08 | |||
| Dividend yield | 0.00 | 0.01 | 0.02 | |||
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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
-
Compute the growth duration of Company A relative to Company B. Do not round intermediate calculations. Round your answer to two decimal places.
years
Problem 9-11
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 27.00 23.00 17.00 Expected annual growth rate 0.16 0.14 0.08 Dividend yield 0.00 0.01 0.02 -
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
-
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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Term Structure Models A Graduate Course
Authors: Damir Filipovic
2009th Edition
364226915X, 978-3642269158
