4. Constang growth rates One of the most important components of stock valuation is a firm's estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gilman, an equity research analyst at Gilman Advsors, believes in efficient markets, He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information avallable: - Pan Asla Mining Co.'s stock (Ticker. PAMC) is treding at $17.50. - The company has forecasted net income and book value of equity for the coming year to be $1,104,600 and $8,645,000, respectively. - The company has also been paying dividends for the past eight years and has maintained a dividend payout ratio of 35.000000\%: Besed on this information, Robert's forecast of PAyC's growth rate in carnings and dividends should be: 22375 6.71%