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Question
Gourmet Cheese Shoppe opened at the end of 2001. In its first full year of operations, 2002, earnings per share (EPS) was $0.26. Four years later, in 2005, EPS was up to $0.38, and 7 years after that, in 2012, EPS was up to $0.535. It appears that the first 4 years represented a supernormal growth situation and since then a more normal growth rate has been sustained. What are the rates of growth for the earlier period and for the later period?
a. 6%; 5%
b. 6%; 3%
c. 10%; 8%
d. 10%; 5%
e. 12%; 7%
Answer
This answer is hidden. It contains 183 characters.
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