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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Hypoplasia

Underdevelopment or incomplete development of a tissue or organ, often congenital.

Underdevelopment

A condition characterized by a country's or region's low level of economic growth and modernization, often due to various structural challenges.