Consulting | Excel Examples

Maximum Sustainable Growth

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"

Download File: Click Here
Tip: Click on the link above and choose "Save" to download the xls workbook to your hard drive or "Open" to open the workbook inside of your browser.


Last modified: May 21, 1996