Chapter 5, Problem 11P

### Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250

Chapter
Section

### Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250
Textbook Problem

# GROWTH RATES Sawyear Corporation’s 2017 sales were \$5 million. Its 2012 sales were \$2.5 million. a. At what rate have 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 the statement correct?

a.

Summary Introduction

To Determine: The level at which the sales was growing.

Introduction: Growth rates allude to the rate change of a particular variable inside a particular day and age and given a specific setting. For the investors, growth rates normally speak to the aggravated annualized growth rate of an organization's incomes, profit etc.

Explanation

Determine the level at which the sales was growing

Using a excel spreadsheet and excel function =RATE, the level at which the sales was growing is determined as 14.87%.

b.

Summary Introduction

To Determine: Whether the statement is correct if the growth rate is 20% per year.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started