The company I choose was ABBVIE

Project 3 Pro-Forma 1. Estimate the Internal Growth Rate and the Sustainable Growth Rate (as shown in Chapter 4) for each of the three years for which you have gathered financial data in project 2. (Present all calculations in Excel spreadsheet Sheet 1) 2. Create a Proforma Income statement and balance sheet for your company only (Present all calculations in Excel spreadsheet) a. For sales growth rate use information from yahoo finance. b. Steps to find the sales forecast on yahoo finance i. Go to yahoo finance and type in your firm's name ii. Click on the Analysis tab iii. Scroll down till you see Revenue estimates for next year iv. Use the sales growth rate 3. Calculate an estimate for External Funds Needed (EFN) as shown in Chapter 4 lectures on CANVAS. (Present all calculations in Excel spreadsheet) Paper Submission 1. ProForma a. Discuss what the internal growth rate and sustainable growth rate for your firm are. Are there any meaningful trends apparent? b. Discuss your ProForma calculations for the income statement and balance sheet. Clarify any assumptions made and the reasoning behind your assumption. (i.e. which sales estimates did you use and why?, Did you grow the assets on your balance sheet by the same percentage as your sales increase/decrease why or why not?) c. Discuss EFN results. i. Are there excess funds or external financing needed?

ii. If there are excess funds then what do you recommend the firm should do with the excess funds (i.e. increase dividends, reduce long/short term debt, repurchase stocks). Explain your decision. Use financial ratios trend analysis as support for your decision. (i.e. the firm should increase dividends because their dividend yield has been way below the industry average, they should use the funds to increase assets because their total asset turnover is much higher than the competitors, etc.) iii. If there is external financing needed then how do you recommend the firm should raise those funds (i.e. reduce dividends, issue long/short term debt, issue stocks). Explain your decision. Use financial ratios trend analysis as support for your decision.