What is the implied growth duration of Freed Industries given the following:
$$\begin{array} { l c c }
& \text { Susp Industrials } & \text { Frepd Industries } \
\text { P/ERatios } & 19 & 22 \
\text { Average Guoth (\%) } & 11.0 & 16.0 \
\text { Dividend Yield } & 0.33 & { 0.08 }
\end{array}$$
A) 1.8 years
B) 1.3 years
C) 5.0 years
D) 4.5 years
E) 3.5 years

Question

What is the implied growth duration of Freed Industries given the following:
$$\begin{array} { l c c } 
& \text { Susp Industrials } & \text { Frepd Industries } \
\text { P/ERatios } & 19 & 22 \
\text { Average Guoth (\%) } & 11.0 & 16.0 \
\text { Dividend Yield } & 0.33 & {  0.08  }
\end{array}$$
A) 1.8 years
B) 1.3 years
C) 5.0 years
D) 4.5 years
E) 3.5 years

Quizplus · Accepted Answer

ln (22/19)= T ln [1 + .16 + .08)/(1 + .11 + .033)]
T = 1.8 years

What Is the Implied Growth Duration of Freed Industries Given