Year -5 $90.00 What is the geometric average annual growth rate over the last five years?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter7: Introduction To Financial Statement Analysis
Section: Chapter Questions
Problem 13E
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Telsome Publishing is a small, publicly traded
firm and has reported the following earnings
over the last five years: Year Earnings (in
millions) Current $180.00 Year -1 $100.00 Year
-2 $150.00 Year -3 $115.00 Year -4 $120.00
Year -5 $90.00 What is the geometric
average annual growth rate over the last five
years?
a. 20.00%
b. 14.87%
c. 21.25%
d. 12.47%
e. None of the above
Transcribed Image Text:Telsome Publishing is a small, publicly traded firm and has reported the following earnings over the last five years: Year Earnings (in millions) Current $180.00 Year -1 $100.00 Year -2 $150.00 Year -3 $115.00 Year -4 $120.00 Year -5 $90.00 What is the geometric average annual growth rate over the last five years? a. 20.00% b. 14.87% c. 21.25% d. 12.47% e. None of the above
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