Estimate the sustainable growth rate

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Construct a pro forma income statement and balance sheet for the next year for Novell Inc. (ticker: @NOVL). Estimate the sustainable growth rate using the latest fiscal year-end data. Assume that sales grow at this sustainable growth rate over the next year. Use the percentage-of-sales method to prepare the pro forma statements.

Do you need a plug figure to make the pro forma balance sheet balance?

If so, what plug figure do you use? Since these exercises depend upon real-time data, your answers will change continuously depending upon when you access the Internet to download your data.

Reference no: EM131316928

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