You’ve recently learned that the company where you work is being sold for $315,000

You’ve recently learned that the company where you work is being sold for $315,000

You’ve recently learned that the company where you work is being sold for $315,000. The company’s income statement indicates current profits of $21,000, 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?