The Optical Scam Company has forecast a 15 percent sales growth rate for next year. The current
Question:
a. Using the equation from the chapter, calculate the external funds needed for next year.
b. Construct the firms pro forma balance sheet for next year and confirm the external funds needed that you calculated in part (a).
c. Calculate the sustainable growth rate for the company.
d. Can Optical Scam eliminate the need for external funds by changing its dividend policy? What other options are available to the company to meet its growth objectives?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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