What constant rate does owner believe that profits will grow

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The company where you work is being sold for $200,000. The companyís income statement indicates current profits of $7,000, which have yet to be paid out as dividends. Assuming the company will remain on the market in the infinite future, and the interest rate will remain constant at 5%, at what constant rate does the owner believe that the profits will grow?

Reference no: EM131815832

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