Demonstrate ability to analyze financial statement​, business and finance homework help

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Business Finance

Description

Using the company's financial statements, calculate and evaluate the firm’s sustainable growth rate (SGR) for the last 3 years, and summarize your findings in your paper. Be sure to address the following:

  • What are the sustainable growth rates for your subject company over the period that you studied?
  • How do they compare with the actual growth rates that the company experienced over the period studied?
  • What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?
  • If the firm grew at a rate above or below the SGR, how might it finance its excessive growth or reward its stockholders for the underperformance?
  • 800-1,000 words

  • Demonstrate ability to analyze financial statement using ratio and trend analyses.

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MERITAGE HOMES
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MERITAGE HOMES
Meritage Homes is one of the ten largest single-family homebuilders in the United
States which has been in existence since 1985 having its operations across sixteen major
markets across the Western, Southern and Southeastern United States. The company has
designed and built more than seventy five thousand homes in its twenty seven year history
therefore leading the industry in large-scale sustainable homebuilding practices. The
company has a reputation for a unique style and quality construction. Meritage as a company
was the first national construction company to exceed EPA ENERGY STAR requirements in
every house it built.
This research seeks to establish the sustainable growth rate of Meritage Homes for the
years 2012 to 2014. Sustainable growth rate is calculated using return on equity and dividend
pay-out ratio which is characterized by this formula: SGR = (1-d) x ROE. Where d is the
dividend pay-out ratio. That is the dividends divided by earnings while ROE is the return on
equity. This refers to the net income divided by stockholders’ equity
Operating Data
H o...


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