The interest rate will remain constant at 5 at what, Financial Management

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The interest rate will remain constant at 5 at what

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?

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