Calculate both SGR and IGR for both of these companies (Beximco and Walt Disney). Then create a pro forma income statement and Balance sheet for your local company only - by growing the company sales using the respective SGR only. Comment on the following issues:
Will retain earnings be enough for the desired growth? If not, then consider a loan.
If the loan taken, then check whether the loan will be sustainable or not
Can the company achieve the growth without taking a loan by changing dividend policy?
Keep the following points in mind in calculation:
- Use FY 2020 info as current year (31/12/20)
- Increase depreciation
- Interest expense will not change
- The current D/E is optimum
- All assets will grow
- Among liabilities, only accounts payable will grow (if they have any)
- Equity will not change
- Source of Data: Use investing.com> search your company> Financials
