Calculation of the implied growth duration of company by

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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/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: EM13356793

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