Difficulty:

5. Dell Need to continue really growth for the next year of 1997 simply by around the same growth of mil novecentos e noventa e seis since it increase by 52% in that yr while the market grow by simply 31% as well as the industry will grow by 20% in 1997 although Dell is going to grow simply by 50%. 5. Dell must come with a want to finance its growth intended for the year of 1997 Likely solution:

* Dell can use external pay for to financial their development taking mortgage from financial institutions.

* The advantage of that solution is that they can deliver dividends for its investors.

Some possible costs:

* The price here is the firm will be responsible which is not great for their ideas because that they always avoid need exterior financing.

Recommendation:

* Dell should finance their growth internally since they have a whole lot of retained earnings. 5. The exterior financing will probably be high cost thus i don't guide that choice.

** The Income Declaration and Balance sheet are beneath.

1992| 1993| 1994| 1995| 1996| В | 1997| Season

890| 2, 014| a couple of, 873| three or more, 475| 5, 296| В | 7, 944| Sales

608| one particular, 565| a couple of, 440| a couple of, 737| some, 229| 79. 9%| 6, 344| Cost of sale| 282| 449| 433| 738| 1, 067| В | 1, 601| Gross margin| 215| 310| 472| 489| 690| 13. 0%| one particular, 035| Functioning Expenses| 67| 139| -39| 249| 377| В | 566| Operating salary

7| 4| 0| -36| 6| zero. 1%| 9| Financing & other income| 23| 41| -3| 64| 111| В | 192| Income taxes

51| 102| -36| 149| 272| В | 383| Net profit

2. Growth is 50%

1994| 1995| 1996| %of sales| 1997| Yr

3| 43| 55| 1 ) 04%| 83| Cash

334| 484| 591| 11. 16%| 887| Short-run investments

411| 538| 726| 13. 71%| 1, 089| Accounts Receivables

220| 293| 429| almost 8. 10%| 644| Inventories

80| 112| 156| 2 . 95%| 234| Additional

1, 048| 1, 470| 1, 957| В | 2, 936| Total Current Assests| 87| 117| 179| 3. 38%| 269| Plant & Equipment

5| 7| 12| 0. 23%| 18| Various other

1, 140| 1, 594| 2, 148| В | a few, 222| Total...

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