Keywords: Iteration, Circular Reference, Accounting, Growth, Auditing
Description: Excel's iteration feature solves circular references in the Maximum sustainable growth model
Tip: You can use Excel's iteration feature to solve a circular reference. In a maximum sustainable growth model Excel can iterate to solve the circular formulas where maximum sales growth depends on profit generated and profit depends on sales. If you set the iteration parameters when the workbook opens with a Visual Basic Macro, Excel will iterate to find the maxium sustainable growth. You can use the Tools, Auditing features to trace the circular references.
Guide to the Example: The auto_open macro sets the iteration parameters so that Excel can solve circular references on the worksheet "Growth Model"
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