Select a publicly held company
and access the company’s Web page on the Internet to read its most recent
annual report. The annual report is typically found in an “Investor
Relations” or “Company Information” section within the company’s
Web site. You can use this website to look up any publicly traded company’s
documents for additional consideration. Complete the following:
Using the company’s financial statements, calculate and evaluate the firm’s
sustainable growth rate (SGR) for the last 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?
·
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 might it finance its excessive growth or reward its
stockholders for the underperformance?
