One of the most important cont of stock valuation is a formest growth rate Financial statements provide the informace estimate the growth rate Consider this Robert Grima, neuity research walyst tillman Advisors, believes in efficient markets. He has been fotowing the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valung Pan Asia Mining Co Robert has the following information available: Pan Asia Mining Co.'s Mock (Ticker AMC) is trading # $22.50 The company has forecasted net income and book value oferty for the coming year to be 51.420,200 and $11,115,000, respectively The company wine been sering dividends for the past eight years and has mantained a dividend payout ratio of 45.000000% 3 Based on this information, Robert's forecast of PAMCN growth rate in carings and dividends should be 28.75 7.03 Based on this information, Robert's forecast of PAMC's growth rate in earnings and dividends should be 28.75 31.95 3.62% 7.03% which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant? Growth in earnings requires growth in dividends. Long-run earnings growth occurs primarily because firms pay dividends to reward their shareholders for investing in the company. Retaining a higher percentage of earnings will result in a higher growth rate