Calculate the compounded annual growth rate CAGR) if revenues grew from $50.0m in 2005 to $350.0m in 2012.
A)32%
B)24%
C)55%
D)18%

Name: Calculate the compounded annual growth rate CAGR) if revenues grew from $50.0m in 2005 to $350.0m in 2012. A)32% B)24% C)55% D)18%
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Question

Quizplus · Accepted Answer

The CAGR formula is: CAGR = (EV/BV)^(1/n) - 1, where EV is the ending value, BV is the beginning value, and n is the number of periods. Plugging in the given values: CAGR = ($350m/$50m)^(1/7) - 1 ≈ 0.32 or 32%.

Calculate the Compounded Annual Growth Rate CAGR) If Revenues Grew