Shalit Corporation's 2013 sales were $12 million. It's 2008 sales were $6 million. A. At what rate have the sales been growing? B. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is this statement correct?

Shalit Corporation's 2013 sales were $12 million. It's 2008 sales were $6 million. A. At what rate have the sales been growing? B. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is this statement correct?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.2: Future Values

Problem 4ST

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