Evaluate the firms sustainable growth rate

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Reference no: EM131155790

Question:

Provide a final version of your IP4 submission. Ensure you have taken faculty comments and recommendations in consideration and the paper is APA formatted with cited references.

Then add section two as follows.

Part 2

Using the company''s financial statements, calculate and evaluate the firm's sustainable growth rate (SGR) for the last 2-3 years, and summarize your findings in your paper. Be sure to address the following:

What are the sustainable growth rates for your subject company over the period that you studied?

How do they compare with the actual growth rates that the company experienced over the period studied?

What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?

If the firm grew at a rate above or below the SGR, how did it finance its excessive growth or reward its stockholders for the underperformance?

Based on your analysis, do you believe the firm''s growth strategy is sound and maximizes the value of the firm with reasonable levels of risk?

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.

Verified Expert

In the given assignment financial analysis of Fortescue Metal Group has been done. This assignment also calculates the sustainable growth rate of the company. after that the calculated sustainable growth rate compared with the normal rate in order to arrive at the decision regarding the position of the company which states that company has wide potential for achieving the growth.

Reference no: EM131155790

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