Exhibit 14.2 Use the Information Below for the Following Problem(S)

question 76

Multiple Choice

Exhibit 14.2
Use the Information Below for the Following Problem(S)
Modular Industries currently has a 16% annual growth rate while the market average is 6 percent. The market multiple is 10.
-Refer to Exhibit 14.2.Determine the P/E ratio for Modular Industries assuming Modular can maintain its superior growth rate for the next 8 years.

• A) 6.4
• B) 20.5
• C) 16.5
• D) 23.8
• E) 29.5