If a firms earnings per share grew from $1 to $2 over a 10-year period, the total
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If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100 percent, but the annual growth rate would be less than 10 percent. True? Explain. Under what conditions would the annual growth rate actually be 10 percent per year?
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True because of compounding effects x that is growth on growth The following example demonstrates th...View the full answer
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Related Book For
Essentials of Managerial Finance
ISBN: 978-0324422702
14th edition
Authors: Scott Besley, Eugene F. Brigham
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