BuyFindarrow_forward

Fundamentals of Financial Manageme...

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

Solutions

Chapter
Section
BuyFindarrow_forward

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.

  1. a. At what rate have sales been growing?
  2. 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%.

Excel Spreadsheet:

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

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

How does capitalism differ from socialism and communism?

Foundations of Business (MindTap Course List)

Why should policymakers think about incentives?

Essentials of Economics (MindTap Course List)

COST OF PREFERRED STOCK Tunney Industries can issue perpetual preferred stock at a price of 47.50 a share. The ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)