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Hello,
I tried to do the Q4 in June 2011 exam, however I could not manage to get the percentage of market growth and divisional growth used to assess the position of the division in the BCG Matrix.
I checked in my Kaplan study text which says that the formula is the following:
1+g = n (most recent market revenue / earliest market revenue) * 1/2
I tried to apply this formula but I did not get at all the figures in the answers.
Could you please help me?Thanks
Growth g + 1 = (most recent / earliest) ^ 1/n
So if it’s for 4 years n = 3
So take Restaurants for example, (10968/10752)^1/3 =1.006652
Minus the 1 and you get 0.67%Hope that helps.
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