Question

An analyst estimates that XYZ's earnings will grow from $3.00 a share to $4.50 per share...

An analyst estimates that XYZ's earnings will grow from $3.00 a share to $4.50 per share over the next eight years. The rate of growth in XYZ's earnings is closest to:

4.9%
5.2%
6.7%
0 0
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Answer #1

NPER =8

PMT=0

PV=3

FV=4.50

Using Excel Rate Funtion we can find the Growth Rate

=Rate(8,0,3,-4.50)

Growth Rate =5.20%

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