Exhibit 9-3 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 92

Multiple Choice

Exhibit 9-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Harcourt Industries currently has an 18% annual growth rate while the market average is 8%. The market multiple is 12.
-Refer to Exhibit 9-3. Determine the justified P/E ratio for Harcourt Industries assuming Harcourt can maintain its superior growth rate for the next 9 years.

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

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Definitions:

Indian

A term referring to people from India or, historically and controversially, used to describe Indigenous peoples of the Americas.

Category

A classification or grouping based on shared characteristics or attributes.

Indian Allotment Act

Refers to several U.S. laws that allowed for the division of tribal lands into individually owned parcels, significantly impacting Indigenous sovereignty and land ownership.

Intentions

Plans or objectives that one intends to accomplish or achieve, reflecting a person's motivation and purpose.