USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

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