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5. Companies and growth rates Aa Aa Future value and present value concepts are applied in various ways, such as calculating growth rates, earnings per

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5. Companies and growth rates Aa Aa Future value and present value concepts are applied in various ways, such as calculating growth rates, earnings per share, expected sales and revenues in the future, and so forth. Consider the following case: Pharmacist John S. Pemberton invented a soft drink Germany was a growing market for Coca-Cola, along in 1886 that eventually became not only an integral with other countries in Europe, before world war II part of everyday life in the United States but also a with the previous data given, calculate the symbol of consumerism worldwide. In 1929 the first company's sales growth rate for each time period in Coca-Cola vending machines were installed in the following table: Germany, and in 1930, the German branch of the Coca-Cola Co. opened in Essen. Years Growth Rate Coca-Cola sales in Germany were 243,000 cases in 1934-1936 1934, 1 million cases in 1936, and 4.5 million cases 1936-1939 in 1939. 1934-1939 (Source: "Coca-Cola GmbH and World War Two," www.gettherealfacts.co.uk/docs/gmbh.pdf During world war II, Coca-Cola Co. cut off all syrup sales to Germany in 1940, resulting in no sales from 1943 to 1945. If Coca-Cola's sales had grown from 1939 to 1945 at the same rate that they grew between 1934 and 1939, its sales in 1945 would have been approximately cases. (Hint: Use sales data from 1939 as the present value.)

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