-----he following information about two computer software firms and the S&P Industrials: Activity Frame P/E ratio Company A 31.00 Expected annual growth rate Dividend yield 0.17 0.00 Company B S&P Industrials 28.00 0.15 0.01 15.00 0.10 0.03 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: Company B: years 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
-----he following information about two computer software firms and the S&P Industrials: Activity Frame P/E ratio Company A 31.00 Expected annual growth rate Dividend yield 0.17 0.00 Company B S&P Industrials 28.00 0.15 0.01 15.00 0.10 0.03 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: Company B: years 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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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