Robert Gillman, an equity research analyst at Gillman Advisors, 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 available: Pan Asia Mining Co's stock (Ticker: PAMC) is trading at dollar16.25. The company's stock is expected to pay a year-end dividend of dollar0.78 that is expected to grow at a certain rate. the stock's expected capital gains yield is 7.80percentage. Based on this information just given, what will be Robert's forecast of PAMC's growth rate? 7.75percentage 2.49percentage 3.00 percentage 4.50percentage Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant? Paying a higher percentage of earnings as dividends will result in a higher growth rate. Dividend growth and earning growth are unrelated. Long-run earnings growth occurs primarily because firms retain earning and reinvest them in the business