Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

No need to explain!! Please give me the answer as soon as possible! I'll give it a thumbs up!!No need to explain!! Please give me

image text in transcribedNo need to explain!! Please give me the answer as soon as possible! I'll give it a thumbs up!!No need to explain!! Please give me the answer as soon as possible! I'll give it a thumbs up!!No need to explain!! Please give me the answer as soon as possible! I'll give it a thumbs up!!No need to explain!! Please give me the answer as soon as possible! I'll give it a thumbs up!!

Section 3 Short questions (Total 16 points) Question 1 (8 points) Alpha Mail is a company selling anti-virus software. The business of anti-virus is booming and its annual growth rate is expected to be 100 basis points above the general economic growth rate in the real term. Economists expect the real GDP to grow at 3% per year and the inflation rate to be 2.5% per year in the long run. In 2020, the total market size of anti-virus software was $10.500 million. Alpha Mail had a market share of 5% in 2020. Alpha Mail's software offering measures up well against the competitions, both in terms of features and price. In addition, the management of the company includes the founder who has had experience in other successful software start-ups. Therefore, its market share is projected to be 10% by the end of 2024 as shown in the following table. Answer the followings: a) (5 points) Forecast Alpha Mail's revenue in 2021-24 and write down your answer in the spaces provided in the table. State your answers in 1 decimal place. Year 2020 2021 2022 2023 2024 10,500 9% 10% 5% 7% 8% Market size ($ million) Market share of Alpha Mail Alpha Mail's revenue b) (3 points) Do you use a top-down, a bottom-up, or a hybrid approach for your revenue forecast for Alpha Mail in part (a)? Explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Carbon Markets Or Climate Finance?

Authors: Axel Michaelowa

1st Edition

0415743435, 978-0415743433

More Books

Students also viewed these Finance questions