USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 87

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Modular Industries currently has a 16 percent annual growth rate, while the market average is 6 percent. The market multiple is 10.
-Refer to Exhibit 9.11. Determine the justified P/E ratio for Modular Industries assuming Modular can maintain its superior growth rate for the next five years.

• A) 6.4
• B) 13.1
• C) 16.5
• D) 23.8
• E) 15.7

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Definitions:

Logically

Pertains to clear, structured, and reasonable thinking or arguing based on established principles of validity.

Systematically

In a methodical and organized manner, following a fixed plan or system.

Cognitive Strategies

Techniques or approaches utilized in thinking or problem-solving to achieve specific goals.

Working Memory

A cognitive system that holds and manipulates information over short periods, crucial for reasoning, guidance of decision-making, and behavior.