Q. The Tried and True Corporation had earnings of $0.20 per share in 1978. By 1995, a period of 17 years, its earnings had grown to $1.01 per share. What was the compound annual rate of growth in the company's earnings?
Open the Single Cash Flow screen. Select solve for Interest rate.
Future Value: 1.01
Present Value: 0.2
Time Period in Years: 17
Compounding Interval: Yearly
Ans: 9.99 ~ 10% compound growth
No comments:
Post a Comment