BMGT 340 Forecasting Sales 25 points When you have completed this assignment, you will be able to:-Calculate historical yearly sales growth-Identify analyst estimates of growth-perform a regression using the regression tool in excel-use the regression output and use the average of your calculations and analysts’ predictions to create two forecasts of future sales 1. Go to the 10 year income statement you downloaded for your company in assignment #1. Look at the revenues (or sales) for the most recent 5 years for your company. 2. Calculate the historical sales growth rate. To find the sales growth rate, use the formula: Sales in year 2 - Sales in year 1 Sales growth in year 1 = Sales in year 1 Use this formula for a 5 year period (you will have 4 numbers). Average these numbers. 3. Look up what analysts believe is the future growth rate in sales, earnings or dividends for your company. Find at least three estimates of earnings, cash flow, or dividend growth for the longest future period that you can find (probably 5 years). Note – you can find this in yahoo finance and Hoovers, but look for other sources as
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This note was uploaded on 11/24/2011 for the course FINANCE 340 taught by Professor White during the Fall '11 term at Maryland.