Trugman presented a forecasting environment for a company that had provided actual annual revenues for the past five years. During this period, the CAGR of revenues was approximately 2.5% per year. We then looked at forecast revenues provided by the owner/manager for the next 5 years. The purpose of the valuation was to estimate the value of the company as the owner/manager was going through a divorce settlement.

	a.	No conclusions can be drawn regarding the forecast revenues in the divorce scenario.
	b.	The revenue forecast was unbiased and revenue growth was in line with the preceding 5 years.
	c.	The revenue forecast was biased downwards in order to have the resulting valuation be as low as possible.
	d.	The revenue forecast was biased upwards in order to have the resulting valuation be as high as possible