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What is the estimated value of rev0

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Reference no: EM13877025

CFO of a company claims that their annual revenue, Rev, (in $1,000) over time grows according to the following model:

Revt = Rev0 (1 + g)t

She used the revenue data from the last 10 years and estimated the model as ln Rˆevt = 5.521 + 0.03t

(a) Determine the growth rate of the revenue.

(b) What is the estimated value of Rev0 ?

(c) Predict the firms revenue for period 11.

Reference no: EM13877025

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