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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

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 16.00
Expected annual growth rate 0.19 0.16 0.08
Dividend yield 0.00 0.01 0.02
  1. 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

  2. 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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