Ask Question
15 November, 13:31

Five years ago, Weed Go Inc. earned $1.50 per share. Its earnings this year were $3.20. What was the growth rate in earnings per share (EPS) over the 5-year period? Group of answer choices a. 18.94% b. 18.04% c. 16.36% d. 17.18% e. 15.54%

+4
Answers (1)
  1. 15 November, 16:13
    0
    Option C 16.36% is correct.

    Explanation:

    We can find the growth using the following growth formula:

    g = (Earning per share today / Earning per share n years ago) ^ (1/5) - 1

    EPS of this year is $3.2 per share and 5 ago was $1.5 per share.

    So by putting values we have:

    g = (3.2 / 1.5) ^ (1/5) - 1 = 16.36%

    The right option is C.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Five years ago, Weed Go Inc. earned $1.50 per share. Its earnings this year were $3.20. What was the growth rate in earnings per share ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers