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You've recently learned that the company where you work is being sold for $525,000. The company's income statement indicates current profits of $22,000, which have
You've recently learned that the company where you work is being sold for $525,000. The company's income statement indicates current profits of $22,000, which have yet to paid out as dividends. Assuming the company will remain a "going concern" indefinitely and that the interest rate will remain constant at 6 percent, at what constant rate does the owner believe that profits will grow?
Growth Rate of: __________ Percent?
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