Will, an equity research analyst at UT 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.Alex has the following information available:

Pan Asia Mining Co,s (Ticker: PAMC) stock is trading at $50.36

The company has forecasted net income and book value of equity for the coming year to be $1,420,200 and $11,115,000, respectively.

The company has also been paying dividends for the past eight years and has maintained a dividend payout ratio of 55%.

Based on this information, Alexs forecast of PAMCs growth rate in earnings and dividends should be: