Calculation of implied growth duration of company

Reference no: EM1315695

Calculation of the implied growth duration of company by using various parameters.

1. What is the implied growth duration of Kayleigh Industries given the following:

	S P Industrials	Kayleigh Industries
P/E ratios	16	24
Expected growth	0.06	0.14
Dividend yield	0.04	0.02

2 . Lauren Industries has an 18 percent annual growth rate compared to the market rate of 8 percent. If the market multiple is 18, determine P/E ratios for Lauren Industries, assuming its beta is 1.0 and you feel it can maintain its superior growth rate for

a). the next 10 years.

b). the next 5 years.

Reference no: EM1315695

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