Simple compound growth method

Definition:

Calculating a growth rate by relating terminal value to initial value and assuming a constant percentage annual rate of growth between the two values.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Historical Cost Accounting Convention

An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition.

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