I need help for my finance class regarding growth rate. Here is the question: Martell Corportation's sales in 2008 were 12 million. Sales were 6 million 5 years ago. At what rate have sales grown.
Is there a formula for this? Ill take all the help i can get. Thanks ahead of time.|||On average the sales grow by a factor 1+g per year. Sales have grown by a factor 2 in five years.
So (1+g)^5 = 2
Take logaritms: 5 ln (1+g) = ln 2 =%26gt; ln (1+g) = 0.2 ln 2 = 0.1386
Therefore g=14.9%
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