Discuss the major assumptions of the growth duration model

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1. Discuss the major assumptions of the growth duration model. Why could these assumptions present a problem?

2. You are told that a growth company has a P/E ratio of 13 times and a growth rate of 15 percent compared to the aggregate market, which has a growth rate of 8 percent and a P/E ratio of 16 times. What does this comparison imply regarding the growth company? What else do you need to know to properly compare the growth company to the aggregate market?

Reference no: EM13924244

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