Exhibit 14.3 Use the Information Below for the Following Problem(S)

question 64

Multiple Choice

Exhibit 14.3
Use the Information Below for the Following Problem(S)
Harcourt Industries currently has an 18% annual growth rate while the market average is 8 percent. The market multiple is 12.
-Refer to Exhibit 14.3.Determine the justified P/E ratio for Harcourt Industries assuming Harcourt can maintain its superior growth rate for the next 9 years.

• A) 5.98
• B) 13.13
• C) 21.20
• D) 58.68
• E) 26.65

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