Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 11.0% per year. If that growth rate were maintained, how many years would it take for Thomson's EPS to triple?

10.52 years

Explanation:

We can work out the number of years using this relationship

V = P * (1+r) ^n

V = tribe valeu = 3*3.5 = 10.5

r-growth rate - 11%

n - number of years-?

10.5 = 3.5 * (1.11) ^n

dividing both sides by 1.11^n

1.11^n = 10.5/3.5

taking the log of both sides

n log 1.11 = log 3

n = log 3/log 1.11

n = 10.52