USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 13

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Harcourt Industries currently has an 18 percent annual growth rate, while the market average is 8 percent. The market multiple is 12.
-Refer to Exhibit 9.12. Determine the justified P/E ratio for Harcourt Industries assuming Harcourt can maintain its superior growth rate for the next nine years.

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

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Definitions:

Nitrogen-Containing Base

One of the building blocks of DNA and RNA molecules, including adenine, guanine, cytosine, thymine (in DNA) and uracil (in RNA), which are key to encoding genetic information.

Phosphate Group

A functional group consisting of a phosphorus atom bonded to four oxygen atoms, important in energy transfer and storage molecules like ATP.

Clone

Genetic copy of an organism.

Genetic Copy

A genetic copy refers to an organism or cell that has the exact same genetic makeup as another, essentially a synonym for a clone but often used in the context of molecular genetics.