Lauren Entertainment, Inc., has an 18 percent annual growth rate compared to the market rate of 8 percent.
If the market multiple is 18, determine P/E ratios for Lauren Entertainment, Inc., assuming its beta is 1.0 and you feel it can maintain its superior growth rate for:
a. The next 10 years.
b. The next 5 years.
If the market multiple is 18, determine P/E ratios for Lauren Entertainment, Inc., assuming its beta is 1.0 and you feel it can maintain its superior growth rate for:
a. The next 10 years.
b. The next 5 years.
