What Is the Implied Growth Duration of Jones Industries Given

question 51

Multiple Choice

What is the implied growth duration of Jones Industries given the following: $\begin{array}{lcc}&\text { S\&P Industrials } & \text { Jones Industries } \\\text { P/E Ratios } & 12 & 15 \\\text { Average Growth (\%) } & 6.0 & 10.0 \\\text { Dividend Yield } & .05 & .03\end{array}$

• A)7.2 years
• B)10.9 years
• C)12.5 years
• D)13.9 years
• E)15.2 years

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Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance.

Variable Cost

A cost that varies directly with the level of production or sales volume, such as materials and labor.

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An equation used to determine the total cost of production, including fixed and variable components, to assess profitability and price-setting.

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