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

---

Definitions:

Formal Operational

The stage of cognitive development, as proposed by Piaget, where individuals are able to think abstractly, logically, and systematically.

Concrete Operational

A stage in Piaget's theory of cognitive development where children aged 7 to 11 years start thinking logically about concrete events.

Metacognition

involves the awareness and understanding of one's own thought processes, often referred to as "thinking about thinking".

Systematic Thinking

A methodical approach to problem-solving and decision-making that involves logical, step-by-step procedures.