Question
Suppose you are a stock analyst and have been assigned to follow a company that went public two years ago. In the three years prior
Suppose you are a stock analyst and have been assigned to follow a company that went public two years ago. In the three years prior to going public, the firm saw on average 20% quarterly growth in sales. Since going public, you have noticed a decline in the growth rate of sales, and in the last quarter the firm announced a 12% increase in sales. You have been given the task of forecasting the next two years of sales for the firm. Give two reasons why you would expect a return to higher growth and one reason why you would expect a continued decline in growth.
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