Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Warren Buffetts company went public in 1965. The public offering price was $16 per share. The stock was traded at $94,500 on April 10, 2013,

Warren Buffetts company went public in 1965. The public offering price was $16 per share. The stock was traded at $94,500 on April 10, 2013, and the market value of the firm was $95.4 billion.

a) What is the firms average annual compound growth rate over the last 48 years?

b) If Mr. Buffetts company continues to grow at an historical growth rate, what will be his companys total market value when he reaches the age of 100? (Buffett celebrated his 78th birthday in 2009)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Auditing And Assurance

Authors: James A. Hall, Tommie Singleton

2nd Edition

0324191987, 978-0324191981

More Books

Students also viewed these Accounting questions