Your model should be constructed so that it balances: that is, assets should equal liabilities; sources equal uses. Put checks into your model to verify that it balances. In addition, your model should be constructed in such a way that the sections that contain equations do not have any numbers as parameters. Th e parameters should be in a separate section, with the two decision variables—sales growth and dividend payout—clearly delineated. Use Excel’s naming utility to name your parameters, for example, cash_sales for cash divided by sales. Th is will help you organize your model and make it easier to interpret your formulas

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