What is the implied growth duration of Casey Industries given the following:
$\begin{array}{lcc}
& \text { SEP Industrials } & \text { Casey Industries } \
\text { P/E Ratios } & 15 & 20 \
\text { Average Growth }(\%) & 5.0 & 15.0 \
\text { nirislensl Vielst } & .04&.06
\end{array}$

A) 3.2 years
B) 2.8 years
C) 4.8 years
D) 9.6 years
E) 13.2 years

Question

What is the implied growth duration of Casey Industries given the following:
$\begin{array}{lcc} 
& \text { SEP Industrials } & \text { Casey Industries } \
 \text { P/E Ratios } & 15 & 20 \
\text { Average Growth }(\%) & 5.0 & 15.0 \
 \text { nirislensl Vielst } & .04&.06
\end{array}$

A) 3.2 years
B) 2.8 years
C) 4.8 years
D) 9.6 years
E) 13.2 years

Quizplus · Accepted Answer

ln (20/15)= T ln [1 + .15 + .06)/(1 + .05 + .04)]
T = 2.8 years

What Is the Implied Growth Duration of Casey Industries Given