Chapter 1 Homework 11. You've recently learned that the company where you work is being sold for $275,000. The company's income statement indicates11.

You’ve recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000, 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%, at what constant rate does the owner believe that profits will grow? Does this seem reasonable?