Question
Canyon Buff Enterprises (CBE) has averaged revenue growth of 1.5% and earnings growth of 0.5% over the past 5 years. Meanwhile, Amarillo National Corp (ANC)
Canyon Buff Enterprises (CBE) has averaged revenue growth of 1.5% and earnings growth of 0.5% over the past 5 years. Meanwhile, Amarillo National Corp (ANC) has averaged revenue growth of -1.3% and earnings growth of 2.7%. Assuming the historical trends continue, which of the two companies may have a problem in the future?
Neither company appears to have a problem.
Both companies have a problem because CBE has earnings growth less than revenue growth and ANC has negative revenue growth.
Only CBE has a problem because it has earnings growth less than revenue growth.
Only ANC has a problem because it has negative revenue growth.
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Unlimited Business Financing
Authors: Trent Lee, Dr Chad Lee
1st Edition
1934275050, 9781934275054
