· Prepare a paper analyzing the company’s growth challenges and making appropriate recommendations:
Using the sustainable growth equation from your textbook, calculate the company’s sustainable growth rate for at least the past three years. Compare your calculated sustainable growth rate to the company’s actual growth rate in sales during this period.
Begin your paper by creating a table showing the company’s actual growth rates, the sustainable growth rates you calculated, and the four components of sustainable growth: profit margin, retention ratio, asset turnover, and financial leverage (assets/equity).
Describe what growth challenge the company is currently facing.
Analyze what actions the company has taken to deal with their particular growth challenge. Your analysis should be based on changes in the components of sustainable growth, on the actions reported by executives in annual reports, and on any other commentary you discover through your research.
Make a series of specific recommendations on what actions the company could take in the future to address its growth challenges.