Need review and help
I need a little favour from you guys. I've worked around my first model now, and I want someone to review it and help me with some queries.
About the company----
Industry - Research and Development
Life - 5-6 years in operations
Bootstrap with no Dividends
Borrowing are majorly director loans
So my first years of prediction is done and balance sheet tallies. Now moving forward I want to assume a PLC curve where the growth of the company tends to decline after 2 year's as the maturity stage arrives. Is it a sound approach?? Will it make sense in a real model? Cause I can't just assume higher and higher growth.
the Weighted average Costs. As there are no dividends I'll go for CAPM.
Most Important - while predicting the future expenses and incomes,
. the averages should include all the years including last predicted year?
Or
. There should be a moving window logic with latest 4 years for average.
Or
. I should stick with the actual data I have and just tweak it a bit.
Any further suggestions would be greatly appreciated