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- Topic: Question on time value of money
| Author | Topic: Question on time value of money |
|---|---|
| sagigirl @2014-05-01 15:34:52 |
Hi guys, I had one question regarding the no. of years to be taken for a growth rate for this folling question. you are analysing the last 5 yrs of earning per share for a company.The fig are $4.00,$4.50,$5.00,$6.00,$7.00.At what compund annual rate did the EPS grow during these years. This the question given in the main material of CFA. I took the no.of yrs as 5 where as the solution for the question shows 4yrs. Can anyone help me in understanding this. Advance Thanks and good day. |
| NufaNka @2014-05-02 15:02:36 |
4$ is period 0. As simple as that. |
| dhyun3 @2014-05-07 09:45:46 |
t0=4.00 t1=4.5 t2=5 t3=6 t4=7 So, you should use 4yrs instead of 5yrs. hope it helps. |
