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You've recently learned that the company where you work is being sold for $475,000. The company's income statement indicates current profits o. $18,000, 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 10 percent, at what constant rate does the owner believe that profits will grow? Round your response to two decimal places.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91238440

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