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problem: You are given the following data about two (2) computer software firms and the S&P Industrials:

 

Company A

Company B

S P industrials

P/E ratios

30

27

18

Expected growth

0.18

0.15

0.07

Dividend yield

0

0.01

0.02

[A] find out the growth duration of each company stock relative to the S&P Industrials.

[B] find out the growth duration of Company A relative to Company B.

[C] Given these growth durations, determine your investment decision?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920242

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