Hanebury Corporation's current sales were $4 million. Sales were $2 million 4 years earlier. a. To the
Question:
Hanebury Corporation's current sales were $4 million. Sales were $2 million 4 years earlier.
a. To the nearest percentage point, at what rate have sales been growing?
b. Suppose someone calculated the sales growth for Hanebury Corporation in part a as follows: "Sales doubled in 4 years. This represents a growth of 100% in 4 years, so, dividing 100% by 4, we find the growth rate to be 25% per year." Explain what is wrong with this calculation.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Answered By
Jehal Shah
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Related Book For 
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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