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You’ve recently learned that the company where you work is being sold for $350,000. The company’s income statement indicates current profits of $12,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” indefinitely and that the interest rate will remain constant at 7 percent, at what constant rate does the owner believe that profits will grow?
Instruction: Round your response to 2 decimal places.
1. Growth rate of____ percent.
2. The supply curve for product X is given by QXS = -440 + 20PX .
a. Find the inverse supply curve. P =____ +____ Q
b. How much surplus do producers receive when Qx = 420? _______
c. When Qx = 980?_____
d. When QX = 420:_____
e. When QX = 980:_____
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