Using the company’s financial statements, calculate and evaluate the firm’s sustainable growth rate (SGR) for the last 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 might it finance its excessive growth or reward its stockholders for the underperformance?
- 800-1,000 words
Demonstrate ability to analyze financial statement using ratio and trend analyses.
