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Business, 31.12.2019 03:31 lolah7516

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 asis minin co.

robert has the following information available.

pan asis minin co. stock is trading at $23.75

the company's stock is expected to apy a year-end divfident of $1.14 that is expected to grow at a certain reat.

the stock's expected rate of return is 11.40%

based on the information just given, what will be robert's forecast of pamc's growth rate?

a. 6.60% b.11.35 c. 5.48% d. 9.90%

which of the following statements accurately describes the relationship between earning and dividends when all other factors are held constant?

a. growth in earning requires in dividends.

b. long-run earnings growth occurs primarily because firms pay dividends to reward their shareholders for investing in the company

c. retaining a higher percentage of earning will result in a higher growth rate.

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Answers: 2

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