You are given the following information about two computer software firms and the S&P Industrials: S&P Industrials Company A Company B 26.00 29.00 19.00 0.15 0.12 0.09 0.00 0.02 0.03 P/E ratio Expected annual growth rate Dividend yield 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 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 years

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
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You are given the following information about two computer software firms and the S&P Industrials:
Company A
Company B
26.00
29.00
0.15
0.12
0.02
0.00
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
b. Compute the growth duration of Company A relative to Company B. Do not round intermediate calculations. Round your answer to two decimal places.
P/E ratio
Expected annual growth rate
Dividend yield
years
years
S&P Industrials
19.00
0.09
0.03
Transcribed Image Text:You are given the following information about two computer software firms and the S&P Industrials: Company A Company B 26.00 29.00 0.15 0.12 0.02 0.00 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 b. Compute the growth duration of Company A relative to Company B. Do not round intermediate calculations. Round your answer to two decimal places. P/E ratio Expected annual growth rate Dividend yield years years S&P Industrials 19.00 0.09 0.03
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