Question

find the average annual growth rate for each of the firms

Firm	2006	2007	2008	2009	2010	2011
Loewen	1	1.07	1.3	1.21	1.27	1.35
Morse	1.12	0.8	0.8	1.2	1.35	1.35
Huddleston	1.75	2.5	3.6	3.75	3.8	4.25
Meyer	2.25	2.5	2.1	2.74	2.85	2.96

Answer 1

HI

For Average annual growth rate at first each year growth rate need to be calculated:

Below is the excel formula and excel values for average annual growth rate for these firms:

x ✓ fox A C D E F G H I 2006 Average annual growth rate Firm Loewen growth rate 2007 1.07 =E3/D3-1 2008 1.3 =F3/E3-1 2009 1.21 =G3/F3-1 2010 1.27 =H3/G3-1 2011 1.35 =13/H3-1 = (14+H4+G4+F4+E4)/(12-D2) 1.12 0.8 =E6/D6-1 0.8 =F6/E6-1 1.35 =H6/G6-1 1.35 =16/H6-1 =(17+H7+G7+F7+E7)/($1$2-$D$2) Morse growth rate Huddleston growth rate 1.2 =G6/F6-1 3.75 =G9/F9-1 4.25 2.5 =E9/D9-1 3.6 =F9/E9-1 3.8 =H9/G9-1 =19/H9-1 = (110+H10+G10+F10+E10)/($1$2-$D$2) 2.25 Meyer growth rate 2.5 =E12/D12-1 2.1 =F12/E12-1 2.74 =G12/F12-1 2.85 =H12/G12-1 2.96 =112/H12-1 =(113+H13+G13+F13+E13)/($1$2-$D$2)

Values are below:

Firm	2006	2007	2008	2009	2010	2011	Average annual growth rate
Loewen	1	1.07	1.3	1.21	1.27	1.35
growth rate		7.00%	21.50%	-6.92%	4.96%	6.30%	6.57%
Morse	1.12	0.8	0.8	1.2	1.35	1.35
growth rate		######	0.00%	50.00%	12.50%	0.00%	6.79%
Huddleston	1.75	2.5	3.6	3.75	3.8	4.25
growth rate		42.86%	44.00%	4.17%	1.33%	11.84%	20.84%
Meyer	2.25	2.5	2.1	2.74	2.85	2.96
growth rate		11.11%	-16.00%	30.48%	4.01%	3.86%	6.69%

Thanks