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Finding an EPS Growth Rate

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The problem asks to find the EPS growth rate and the dividend growth rate. The instructor said to use the formula below:

(1+gEPS)^5EPS02=EPS07

(1+gEPS)^5*816,000=1,200,000

This is were I get stuck. How do I get gEPS out of the parenthesis?

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Solution Summary

This solution illustrates how to find an earning per share growth rate using Excel.

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This formula is used to find the growth rate of a constantly growing earnings per share over a 5 year period. You would need to do ...

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