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%, but the annual growth rate would be less than 10%. True or false? Explain.

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 09:49 AM

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If a firms earnings per share grew from $1 to $2 over a 10-year period, the total

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True because of compounding effects x growth on growth The fol...View the full answer

Fundamentals of Financial Management

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