Exhibit 9-2 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 64

Multiple Choice

Exhibit 9-2
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Modular Industries currently has a 16% annual growth rate while the market average is 6%. The market multiple is 10.
-Refer to Exhibit 9-2. Determine the justified P/E ratio for Modular Industries assuming Modular can maintain its superior growth rate for the next 5 years.

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

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Definitions:

Treaty of Versailles

The peace treaty that ended World War I, signed in 1919, which imposed heavy reparations and territorial losses on Germany, contributing to economic hardship and political instability in Germany.

German Military

The armed forces of Germany, historically known for its role in both World Wars and its transformation post-World War II with the establishment of the Bundeswehr in 1955.

Wilson's Goals

Refers to President Woodrow Wilson's objectives, including his "Fourteen Points" for achieving peace after World War I and his efforts to establish the League of Nations.

Labor Movement

The collective organization of working people, through unions and other groups, to improve their rights, working conditions, and wages.