What is the implied growth duration of Howard Industries given the following:
$$\begin{array} { l c c }
& \text { NuP Industrials } & \text { Hqwird Industries } \
\text { P/ERetios } & 14 & 24 \
\text { Average Groth } ( \% ) & 6.0 & 12.0 \
\text { Dividend Yield. } & .07 & .04
\end{array}$$
A) 11.5 years
B) 16.8 years
C) 22.6 years
D) 18.4 years
E) 20.6 years

Question

What is the implied growth duration of Howard Industries given the following:
$$\begin{array} { l c c } 
& \text { NuP Industrials } & \text { Hqwird Industries } \
 \text { P/ERetios } & 14 & 24 \
\text { Average Groth } ( \% ) & 6.0 & 12.0 \
\text { Dividend Yield. } & .07 & .04
\end{array}$$
A) 11.5 years
B) 16.8 years
C) 22.6 years
D) 18.4 years
E) 20.6 years

Quizplus · Accepted Answer

ln (24/14)= T ln [1 + .12 + .04)/(1 + .06 + .07)]
T = 20.6 years

What Is the Implied Growth Duration of Howard Industries Given