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Revenue at a private company grew from $40 million to $90 million over four years. What compound annual growth rate does that imply?

  1. A. 31.3%
  2. B. 56.3%
  3. C. 18.0%
  4. D. 22.5%Correct

Takeaway. A growth rate over four years is two square roots of the multiple, and over any horizon it is a root of the multiple rather than a division of total growth.

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