b. Suppose someone calculated the sales growth for Hanebury in part a as follows: Sales doubled in

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b. Suppose someone calculated the sales growth for Hanebury in part a as follows:

“Sales doubled in 5 years. This represents a growth of 100% in 5 years; dividing 100% by 5 results in an estimated growth rate of 20% per year.” Explain what is wrong with this calculation.

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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