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Microsoft Corp. reported earnings per share of $ .66 in 2003 and $2.58 in 2013. At...

Microsoft Corp. reported earnings per share of $ .66 in 2003 and $2.58 in 2013. At what annual rate did earnings per share grow over this period? Assume annual compounding and end of period mode. Round answer to the tenth place. ____&

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Answer #1

Future Value = present value * ( 1+ Rate of Interest)^ time

2.58= 0.66* (1+Rate of Interest)^(10)

[(2.58/0.66)^(1/10)]-1=Rate of Interest

Rate of Interest=14.61%

Answer: 14.6 %

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