5. Constant-growth rates One of the most important components or stock valuation is a firm's estimated growth rate. Financial statements provice the information needed to estimate the growth rate Consider this case: Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been folowing 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 available Pan Asia Mining Co.'s stock (Ticker: PAMc) is trading at $13.75 The company has forecasted net income and book value of equity for the coming year to be $867,900 and $6,792,500, respectively. The company has also been paying dividends for the past eight years and has maintained a dividend payout ratio of 27.50% Based on this information, Robert's forecast of PAMC's growth rate in earnings and dividends should be 17.57% 9.59% 9.26% 527% Which of the following statements accurately describes the relationship between earnings and dividends when all 3 5 6