Question
Calculate both SGR and IGR for Disney . Then create a proforma income statement and Balance sheet for your local company only - by growing
Calculate both SGR and IGR for Disney . Then create a proforma income statement and Balance sheet for your local company only - by growing the company sales using the respective SGR only. Comment on the following issues: Will retain earnings be enough for the desired growth? If not, then consider a loan. If the loan taken, then check whether the loan will be sustainable or not Can the company achieve the growth without taking a loan by changing dividend policy? Keep the following points in mind in calculation: - Use FY 2020 info as current year (31/12/20) - Increase depreciation - Interest expense will not change - The current D/E is optimum - All assets will grow - Among liabilities, only accounts payable will grow (if they have any) - Equity will not change - Source of Data: Use investing.com> search your company> Financials
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