Explanation of Growth Rates - Include an explanation about growth rate projectio

Question

Explanation of Growth Rates - Include an explanation about growth rate projections for the company. (Note: it is difficult to justify long-term growth rates that exceed the growth rate of the economy.)

Explanation of All Other Assumptions - Include an explanation of all other assumptions related to future operating performance including costs, margins, efficiency, capitalization, etc. Note: All assumptions used in the forecast need to be explained in the written analysis.

Explanation and Interpretation of Projected Financial Statements - Explanation and interpretation of the projected financial statements and discounted free cash flows to include pro forma financial statements (income statements, balance sheets, and statements of cash flows)

Explanation and Interpretation of Overall Forecast Results - Examination and interpretation of the overall forecast results and the projected financial ratio analysis.

The question is how would you explanation each section above? So i just want a break down of each question stated above on how to do explain each part. Like how do i explain the growth rates; what do i include in order to explain, etc? I Just need help understanding each part.

Explanation / Answer

Growth rate generally defines as the annualized rate of growth of the company's revenues, earnings, dividends, and also the macro concepts like GDP as well as the economy as a whole.

There are basically two types of growth rates that is been used for analysis of company position:

Now Assumptions of Growth Rate

Now Projected Financial Statment

These refer to an incorporate current trend and expectations that will arrive at a point of the finanical picture by which the management believes that this can be attained within a predefined time period. At a point of minimum, it shows a summary level income statement and the balance sheet.

For a projected financial statement a company should set the following features that include:

Overall Forecast Results

The overall forecast results depend on:

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