Question: Update the Income Statement projection so that, rather than remaining constant, your assumptions change as follows: Revenue growth rate increases by an additional 1.5% each
Update the Income Statement projection so that, rather than remaining constant, your assumptions change as follows: Revenue growth rate increases by an additional 1.5% each year starting in CY 2025P (e.g. your CY 2025P revenue growth assumption would now be your original CY 2024P revenue growth plus 1.5%, CY 2026P would be 1.5% greater than CY 2025P, and so on); and, Operating expense margins improve by 0.75% each year starting in CY 2025P. NOTE: To avoid calculation errors, do NOT hardcode your revenue growth and operating margin assumptions in the model. Instead, hardcode the steps and link them to your revenue growth and operating margin assumption calculations. If the updated Income Statement projection was integrated into an LBO model, holding all other operating, transaction and exit assumptions equal, what impact would the revised revenue growth and operating expense assumptions have on the return profile of the LBO analysis
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