Robert Gilman, an equity research analyst at Giliman Advisors, believes in efficient markets. He has been following the mining industry for e the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the folowing information available: Pan Asia Mining Co.'s stock (Ticker: PAMC) is trading at $22.50 The company's stock is expected to pay a year-end dividend of $1.08 that is expected to grow at a certain rate. The stock's expected rate of retum is 10.80%. Based on the information just given, what will be Robert's forecast of PAMC's growth rate? O 4.98% O 6.00% O 9.00% O 10.75% Which of the following statements accurately descnbes the relationship between eamings and dividends when all other factors are held constant? Dividend growth and earnings growth are unrelated O Paying a higher percentage of camings as dividends will result in a higher growth rate. O Long-run camings growth occurs primarily because firms retain earings and reinvest them in the business