Sawyer Corporation's 2017 sales were $5 million. Its 2012 sales were $2.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 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? -Select-

Sawyer Corporation's 2017 sales were $5 million. Its 2012 sales were $2.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 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? -Select-

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sawyer Corporation's 2018 sales were $5 million. Its 2013 sales were $2.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 14.87 % 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? The statement is incorrect because there are 6 years of sales growth between 2013 and 2018.
Sawyer 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?
Millat Corporation’s 2016 sales were 12 million. Its 2015 sales were 6 million.a. At what rate have sales been growing?b. Suppose someone made this statement: “Sales doubled in 5 years. This representsgrowth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be20% per year.” Is that statement correct?
Shalit Corporation's 2013 sales were $12 million. It's 2008 sales were $6 million. A. At what rate have the 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 this statement correct?
Xenix Corp had sales of $353,866 in 2017. If management expects its sales to be $476,450 in 3 years, what is the rate at which the company's sales are expected to grow? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72%.) Growth rate %
eBook Sawyer Corporation's 2020 sales were $11 million. Its 2015 sales were $5.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 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? -Select-
Stetson Inc.'s sales for the 2021 were $16 million. Sales were $8 million 5 years earlier. (a) At what rate did the sales grow? (b) Supose someone calculated sales growth for Stetson in part (a) as follows: "Sales doubled in 5 years. This represents a growth of 100 % in 5 years; dividing 100% by 5 results in an estimated growth rate of 20% per year" Explain what is wrong with this calculation.
Jasmine Manufacturing wishes to maintain a sustainable growth rate of 9.75 percent a year, a debt-equity ratio of 48, and a dividend payout ratio of 28.5 percent. The ratio of total assets to sales is constant at 1.27. What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin % 4
Sawyer Corporation's 2015 sales were $9 million. Its 2010 sales were $4.5 million. At what rate have sales been growing? Round your answer to two decimal places.
Sales for Hanebury Corporation’s just-ended year were $12 million. Sales were $6 million 5 years earlier. a. At what rate did sales grow? b. Suppose someone calculated the sales growth for Hanebury in part a as follows: “Sales doubled in 5 years. This represents a growth of 100% in 5 years; dividing 100% by 5 results in an estimated growth rate of 20% per year.” Explain what is wrong with this calculation.
If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growthwould be 100%, but the annual growth rate would be less than 10%. True or false? Explain.(Hint: If you aren’t sure, plug in some numbers and check it out.)
Please Show Answers: Plank’s Plants had net income of $10,000 on sales of $100,000 last year. The firm paid a dividend of $400. Total assets were $600,000, of which $300,000 was financed by debt. a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.) c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

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