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Question 2 -- Growth Rates (IGR and SGR) Answer all question parts below. Use blank spaces to perform any necessary calculations. CELL REFERENCE AND USE
Question 2 -- Growth Rates (IGR and SGR) Answer all question parts below. Use blank spaces to perform any necessary calculations. CELL REFERENCE AND USE EXCEL FUNCTIONS APPROPRIATELY. Format appropriately Daisy's Bulbs would like to increase sales next year by 12.5%. Daisy would like to see if this is possible using internal financing only. Sales growth % 12.5% $ Sales Profit Margin (PM) Dividend payout ratio Capital Intensity Ratio (CIR) TD ratio 245,000 12.2% 0.65 0.50 0.27 5) What are the maximum sales Daisy can generate based on the IGR you calculated above? Maximum sales = M 6) If external financing was obtained, what growth rate could Daisy sustain while keeping the DE ratio constant? SGR = 7) What is Daisy's D ratio? DE ratio = 8) Very briefly, describe what the De ratio tells you
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