What are the sustainable growth rates for your company

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Reference no: EM131155104

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Part 1

It is now time to work on your final draft, summarizing the findings and analysis that you conducted over the past few weeks. Your report should include the following:

• A comprehensive summary of the firm that you chose to study and your initial assessment you conducted in Phase 1 before you conducted your formal financial analysis.

• A summary of your findings after you conducted your financial ratio analysis in Phase 2, including any major concerns or findings that you encountered while conducting the analysis.

• A summary of your findings after you prepared the firm's pro forma statements and what you learned about the firm while performing this task.

Part 2

Using the company's financial statements, calculate and evaluate the firm's sustainable growth rate (SGR) for the last 2-3 years, and summarize your findings in your paper. Be sure to address the following:

• What are the sustainable growth rates for your subject company over the period that you studied?

• How do they compare with the actual growth rates that the company experienced over the period studied?

• What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?

• If the firm grew at a rate above or below the SGR, how did it finance its excessive growth or reward its stockholders for the underperformance?

• Based on your analysis, do you believe the firm's growth strategy is sound and maximizes the value of the firm with reasonable levels of risk?

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.

Reference no: EM131155104

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