What Is the Implied Growth Duration of Howard Industries Given

question 40

Multiple Choice

What is the implied growth duration of Howard Industries given the following:
$$\begin{array} { l c c } & \text { NuP Industrials } & \text { Hqwird Industries } \\ \text { P/ERetios } & 14 & 24 \\\text { Average Groth } ( \% ) & 6.0 & 12.0 \\\text { Dividend Yield. } & .07 & .04\end{array}$$

• A) 11.5 years
• B) 16.8 years
• C) 22.6 years
• D) 18.4 years
• E) 20.6 years

---

Definitions:

Finished Goods

Units of product that have been completed but not yet sold to customers.

Ending Balance

The amount of money in an account at the end of a financial period, after all additions and subtractions have been accounted for.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected hourly wage.