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The Following Table Shows the Price-To-Earnings Ratio for a Stereo

Question 140

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The following table shows the Price-to-Earnings ratio for a stereo equipment manufacturing company between 1998 and 2002.The annual percentage growth rate of the P/E ratios is also calculated and given below.  Year  P/E Ratio  Growth rate %199812.4199914.617.74%(19981999) 200011.123.97%(19992000) 20018.226.13%(20002001) 20026.817.07%(20012002) \begin{array} { c c c } \text { Year } & \text { P/E Ratio } & \text { Growth rate } \% \\1998 & 12.4 & \\1999 & 14.6 & 17.74 \% ( 1998 - 1999 ) \\2000 & 11.1 & - 23.97 \% ( 1999 - 2000 ) \\2001 & 8.2 & - 26.13 \% ( 2000 - 2001 ) \\2002 & 6.8 & - 17.07 \% ( 2001 - 2002 ) \end{array}
Calculate the geometric mean growth rate increase or decrease over the period from 1998 to 2002.


A) -.2592
B) -.1397
C) -.1816
D) .8616
E) .7417

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