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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 31.00 27.00
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 | 31.00 | 27.00 | 19.00 | |||
Expected annual growth rate | 0.15 | 0.13 | 0.10 | |||
Dividend yield | 0.00 | 0.01 | 0.02 |
a.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
b.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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