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SoftTech Inc. is a small manufacturer of entertainment software that reported revenues of $25 million in the most recent financial year. You expect the firm
SoftTech Inc. is a small manufacturer of entertainment software that reported revenues of $25 million in the most recent financial year. You expect the firm to grow significantly over time and capture 8% of the overall entertainment software market in 10 years. If the total revenues from entertainment software in the most recent year amounted to $2 billion and you expect an annual growth rate of 6% in these revenues for the next 10 years, estimate the compounded annual revenue growth rate at SoftTech for the next 10 years.
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