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OpenStudy (anonymous):
Question on CAGR- Compount Annual Growth Rate. I understand to calc the cagr for year 1 @ $9.5 to year 5 @ $54.8 is [($54.8/$9.5)^(1/4)-1=55% I can do it in excel. What I cant get through my thick skull is multiplying the $5.76 ($54.8/$9.5) being raised to the power (^) of .25(1/4)- why can't you just multiply the $5.76 x .25? Any help much appreciated!
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