Revenue at a private company grew from $40 million to $90 million over four years. What compound annual growth rate does that imply?
- A. 31.3%
- B. 56.3%
- C. 18.0%
- 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.
