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?

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?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

See similar textbooks

Similar questions

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?
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 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.
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.
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 %
Sunland Corp had sales of $389,000 in 2017. If management expects its sales to be $476,450 in 4 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 %
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.
Microsoft’s 2016 earnings per share were $2.79, and its growth rate during the prior10 years was 8.80% per year. If that growth rate was maintained, how long would ittake for Microsoft’s EPS to double? (8.22 years)
A company’s 2005 sales were $100 million. If sales grow at 8% per year, how large will they be 10 years later, in 2015, in millions?
Nike corporation earnings per share in 2005 were $4, and its growth rate during 5 years was 9 % per year . If that growths were maintained, how long would it take for Nike ‘s earnings per share to double ?calculate it on excel with formulas
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.
Crane Corp had sales of $322,000 in 2017. If management expects its sales to be $476,450 in 3 years, what is the annual rate at which the company's sales are expected to grow? (Round intermediate calculations to 4 decimal places, e.g. 2.5125 and final answer to 2 decimal places, e.g. 2,515.25.) Annual growth rate %