17 Impact of Eastern European growth. The managers of VGood Corp. (a US fictitious company)

recently had a meeting to discuss new opportunities in Europe as a result of the recent integration among Eastern European countries. They decided not to penetrate new markets because of their present focus on expanding market share in the United States. VGood’s financial managers have developed forecasts for earnings based on the 12% market share (defined here as its percentage of total European sales) that VGood currently has in Eastern Europe. Is 12% an appropriate estimate for next year’s Eastern European market share? If not, does it likely overestimate or underestimate the actual Eastern European market share next year?