USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Harcourt Industries currently has an 18 percent annual growth rate, while the market average is 8 percent. The market multiple is 12.
-Refer to Exhibit 9.12. Determine the justified P/E ratio for Harcourt Industries assuming Harcourt can maintain its superior growth rate for the next nine years.
A) 5.98
B) 13.13
C) 21.20
D) 58.68
E) 26.65
Correct Answer:
Verified
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