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Question 7. Fundamental Growth in Operating Income (Show me your formula and details) In Video Inc. is an online retailer of videos and DVDs. The

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Question 7. Fundamental Growth in Operating Income (Show me your formula and details) In Video 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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