What rate did sales grow

Assignment Help Financial Management
Reference no: EM13889358

Sales for Hanebury Corporation's just-ended year were $10 million. Sales were $5 million 4 years earlier.

At what rate did sales grow? Round your answer to the nearest whole.

Suppose someone calculated the sales growth for Hanebury Corporation in part a as follows: "Sales doubled in 4 years. This represents a growth of 100% in 4 years, so, dividing 100% by 4, we find the growth rate to be 25% per year." Explain what is wrong with this calculation.

Reference no: EM13889358

Questions Cloud

Calculate the estimated break-even point in annual unit sale : Calculate the estimated break-even point in annual unit sales of the new product if Creative Ideas Company uses the. Capital-intensive manufacturing method.
State space representation of the system : Find a new state space representation of the system by diagonalizing the system matrix A. Is the system  controllable?
How much are investors paying for option to buy piglet share : Piglet Pies has issued a zero-coupon 12-year bond that can be converted into 10 Piglet shares. Comparable straight bonds are yielding 10%. Piglet stock is priced at $62 a share. Suppose that you had to make a now-or0never decision on whether to conve..
Discuss the supply-chain implications of retailers : Discuss the supply-chain implications of retailers having low inventory-to-sales ratios if the inventory-to-sales ratios of manufactures and wholesalers are high
What rate did sales grow : Sales for Hanebury Corporation's just-ended year were $10 million. Sales were $5 million 4 years earlier. At what rate did sales grow? Round your answer to the nearest whole.
What percentage of bolts will not meet specifications : A manufacturer produces bolts that are specified to be between 2.25 and 2.35 cm in diameter. Production process produces bolts with diameters normally distributed with mean X cm and standard deviation s cm. What percentage of bolts will not meet s..
Rise for the option strategy to be more profitable : The current price of a stock is $84, and three-month European call options with a strike price of $85 currently sell for $4.20. An investor who feels that the price of the stock will increase is trying to decide between buying 100 shares and buying 2..
Logistics manager get the budget increase : 1.Consider further the Thor International Company situation described in Problem 19.
How you would incorporate social media to promote product : Describe how you would incorporate social media to promote your product or service; be specific in identifying which social media you would use and why. Support your analysis with credible data

Reviews

Write a Review

Financial Management Questions & Answers

  Use the model developed in the excel spreadsheet to answer

use the model developed in the excel spreadsheet to answer the following questions1. what is the efn to achieve the

  Bond valuation-interest payment

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturit..

  Calculate the current market value of this stock

Calculate the future value of $5,000 invested today for 6 years if your investment pays 4% compounded annually - Calculate the present value of $3,000 received 8 years from today - Calculate the expected rate of return for each stock separately.

  Maintain constant growth rate in its dividends

Suppose you know that a company’s stock currently sells for $50 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

  Discuss impact that medicaid cuts will have on krona revenue

Discuss the impact that the Medicaid cuts will have on Krona's revenue. Address the possible issues surrounding next year's forecasting. Provide an explanation of capitation.

  Average dollar of sales brings

Assume that opening up the Souvenir Shop costs Road Atlanta $800, that the average dollar of sales brings in 55 cents of margin, and that only 25% of spectators buy anything. If a spectator does buy something, let’s guess that he or she will spend ar..

  The managing investment banker is responsible for

The managing investment banker is responsible for

  What was the irr if the initial investment

The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. It sold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and sales increasing by 10% each year until it was last sold in 1990..

  Next dividend is expected stock price

ABC’s next dividend is expected to be $3.25, its required return is 21%, its growth rate is 6%. What is ABC's expected stock price in 16 years?

  Nursing home can experience before begins to lose money

WayBhind nursing home contracts with Holdmipay HMO for skilled nursing care at $2.00 PMPM (per member per month). If costs are expected to average $120/day, what is the maximum utilization of days per 1000 members that the nursing home can experience..

  The court held that lightle committed fraud

The court held that Lightle committed fraud by not telling the truth about the contract status of the house. Did he intend to deceive the buyer? Since Lightle was the representative of the sellers, the Leighs, why should he have any obligation to the..

  What will your payoff and profit or loss

On Sep 15, 2015 you buy 500 forward contracts on the S&P 500 index with a delivery price of 2000 and an Oct 15, 2016 expiration date. On Oct 15, 2015 you sell 500 forward contracts on the S&P 500 index with a delivery price of 2005 and the same Oct 1..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd