Ashford University Validate Growth Projections Discussion

Sustainable Growth Rate (SGR) ratio. Your business partner told you that she feels the business will grow by 115% next year. What is your initial reaction in terms of information you need to put this growth estimate in perspective and to justify assumptions?

As you develop your response, focus on the following information (you are encouraged to go beyond the course text for information):

• You are presenting this information about projected sales growth to an interested investor. Projections based on guessing will be unimpressive so you must be able to identify and defend the assumptions you and your partner used to make sales projections.
• Analyze the financial ratio categories and determine if there is a financial ratio that will provide a foundation for your growth projections.
• Offer your peers a link to a video or an article that complements your answer to the items above