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A company reported net income in 2012 of $232.9 million. In 2016, the company expects net income to be $439.5 million. Estima

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

439.5=232.9*(1+r/100)^4

(439.5/232.9)^(1/4)=(1+r/100)

(1+r/100)=1.1721

r=1.1721-1

=17.21%(Approx).

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