I'm working on a Dell Business Case, which I've attached.
I still need to answer the following two questions - actually, my group has already answered the first of the two, but we didn't use any sort of strategy, we just shifted around the numbers to see what would work for the answer we needed to get. I need help answering these, but don't need the actual answer. I'm just having a hard time understanding the concepts. I would really appreciate it if someone could point me in the right direction (I especially want to learn the concepts, not just complete the case for a good grade).
3. Assuming Dell sales will grow 50% in 1997, how might the company fund this growth internally? How much would working capital need to be reduced and /or profit margin increased? What steps do you recommend the company to take?
4. How would your answers to Question 3 change if Dell also repurchased $500 million of common stocks in 1997 and repaid its long-term debt?