InVideo Inc. is an online retailer of videos and DVDs. The firm reported an operating loss of
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InVideo Inc. is an online retailer of videos and DVDs. The firm reported an operating loss of \($10\) million on revenues of \($100\) million in the most recent financial year. You expect revenue growth to be 100%
next year, 75% in year 2, 50% in year 3, and 30% in years 4 and 5.
You also expect the pretax operating margin to improve to 8% of revenues by year 5.
Estimate the expected revenues and operating income (or loss) each year for the next five years.
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Investment Valuation Tools And Techniques For Determining The Value Of Any Asset
ISBN: 9781118011522
3rd Edition
Authors: Aswath Damodaran
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